Doesn't the CAA allow the schools to issue licences? Over here, when the CFI files the paperwork he stamps the Student Pilot Permit to make it a temporary licence. Stateside, I don't know about the schools but the FAA offices issue the temporary licence on the spot. Really simplifies things, because they can take their sweet time with the permanent licence without inconveniencing anybody.
Edit- still not clear on the difference between "with" and "without".
[ 22 August 2001: Message edited by: Squawk 8888 ]