Section 38 of the Act of 1961 is amended by the insertion of the following subsection after subsection (7):

"(7A) Subsections (1), (2), (3), (4) and (5) shall not apply in relation to a mechanically propelled vehicle that is a bicycle or tricycle capable of propulsion solely by the physical exertions of a person or persons seated on it, and equipped with an auxiliary electric motor -

(a) which has a maximum continuous rated power greater than 0.25 kilowatts but less than or equal to 1 kilowatt, and

(b) the output of which cuts off when the physical exertions stop and before, or when, the bicycle or tricycle reaches the speed of 25 kilometres per hour.".