(1)Where the holder of a taxi licence—
(a)applies to the appropriate traffic commissioner for a restricted PSV operator's licence to be granted to him under Part II of the 1981 Act; and
(b)states in his application that he proposes to use one or more licensed taxis to provide a local service;
section 14 of the 1981 Act (conditions to be met before grant of PSV operator's licence) shall not apply and the commissioner shall grant the application.
(2)In this section " special licence " means a restricted PSV operator's licence granted by virtue of this section.
(3)Section 15 of the 1981 Act (duration of licences) shall apply in relation to any special licence as if it required the duration of the licence to be—
(a)five years ; or
(b)where the application for the licence specifies a shorter period, that shorter period.
(4)Without prejudice to his powers to attach other conditions under section 16 of the 1981 Act, any traffic commissioner granting a special licence shall attach to it, under that section, the conditions mentioned in subsection (5) below.
(5)The conditions are—
(a)that every vehicle used under the licence shall be one for which the holder of the licence has a taxi licence; and
(b)that no vehicle shall be used under the licence otherwise than for the purpose of providing a local service with one or more stopping places within the area of the authority which granted the taxi licence of the vehicle in question.
(6)In subsection (5)(b) above " local service " does not include an excursion or tour.
(7)The maximum number of vehicles which the holder of a special licence may at any one time use under the licence shall be the number of vehicles for which (for the time being) he holds taxi licences; and a condition to that effect shall be attached to every special licence under section 16(1) of the 1981 Act.
(8)Section 1(2) of the 1981 Act (vehicle used as public service vehicle to be treated as such until that use is permanently discontinued) shall not apply to any use of a licensed taxi for the provision of a local service under a special licence.
(9)At any time when a licensed taxi is being so used it shall carry such documents, plates and marks, in such manner, as may be prescribed.
(10)Such provisions in the taxi code as may be prescribed shall apply in relation to a licensed taxi at any time when it is being so used; and any such provision may be so applied subject to such modifications as may be prescribed.
(11)For the purposes of section 12(3) of the 1981 Act (which provides that where two or more PSV operators' licences are held they must be granted by traffic commissioners for different traffic areas), special licences shall be disregarded.
(12)A person may hold more than one special licence but shall not at the same time hold more than one such licence granted by the traffic commissioner for a particular traffic area.
(13)The following provisions shall not apply in relation to special licences or (as the case may be) the use of vehicles under such licences—
(a)sections 16(1A) and (2), 17(3)(d), 18 to 20, 22 and 26 of the 1981 Act; and
(b)section 26(5) and (6) of this Act;
and for the purposes of section 12 of that Act this section shall be treated as if it were in Part II of that Act.