If the licensee is correct, when I asked him to produce a valid PEL and he could not (and I think this is the test), the PEL has expired and all inside or outdoor performances of music and dancing are illegal.

If the Chief Executive and the Director of Tourism are correct, when they state that the PEL is valid (despite referring to the application for a new one). Morris Dancing could legally take place inside the rather small pub, but as all outside entertainment except for one day a year is not permitted by the conditions imposed on this PEL, outside Morris, would only be permitted on this one day.

Which ever is correct, there is certainly a restriction for regular and advertised Morris Dancing.