I just copied this off the governments site, hopefully it clears up any confusion.
Why do I need a pleasure craft licence?
A valid pleasure craft licence helps law enforcement and search and rescue workers identify pleasure craft in emergency situations. By law, any pleasure craft, including a personal watercraft, that is powered by one or more motors adding up to 10 hp (7.5 kW) or more must have a valid licence. You must display the licence number on both sides of the bow of your boat in block characters that are at least 7.5 centimetres (3 inches) high, in a colour that contrasts with the colour of the bow.
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