THREE years ago it wowed Christmas shoppers but now Taxi mogul John Preece is threatening to sell his £197,000 land train without it ever having carried fee-paying passengers.

The Taxifast chairman said he had a buyer and was prepared to sell the 22-yard-long vehicle unless last-minute negotiations led to him being able to use it on a city centre route.

The tycoon claims that despite having the backing of police and the city council, the city's bus companies, fearing competition, have opposed the idea and contributed to Key Cabs, which trades as Taxifast, not receiving a Department for Transport licence.

The bus companies either would not be drawn on this or flatly denied it, and the DfT said Taxifast had not proved the vehicle fulfilled a mandatory 'tourist sightseeing function'.

But Mr Preece countered that it was obvious that the land train was for sightseers and described the DfT's decision as 'bizarre'.

He said: "Plymouth is a tourist area; obviously we are going to use it for tourists.

"We are going into a serious recession and you have the Government trying to handcuff you on a tourist bus."

The land train stunned festive crowds when it was unveiled at the Sundial two days before Christmas in 2005.

The Italian-made, 11-tonne, 58-seater had been given a £30,000 revamp to equip it with 18 CCTV cameras, and fourteen 12-inch DVD screens, to show news and entertainment.

Mr Preece's plan was to use the vehicle to ferry passengers between the Drake Circus mall and the so-called 'independent sector' near Frankfort Gate, an area he said now faces a 'bleak future'.

He had to apply for the DfT's Vehicle Special Order to run the land train, but was unable to do this until he could source a fuel supply. The vehicle runs on liquid petroleum gas (LPG).

Taxifast announced it had found a supply last April and applied for a VSO – but was turned down by the DfT.

Now Mr Preece says he has an 'interested buyer' for the landtrain and will sell unless 'we can come up with a solution with the bus companies'.

He said the potential buyer was already running a successful landtrain in another UK city and needed a replacement for an aged vehicle.

Bus firm First said of the landtrain: "It's not something we feel able to comment on."

But Citybus' traffic manager, Brian George, flatly insisted: "We never objected."

The DfT confirmed it rejected a VSO application from Taxifast. It said such an order would only be issued in 'cases sanctioned by the local police and highway authority, and where the designated route is a genuine tourist sightseeing route, and not where a land train is being used as a surrogate shuttle or park-and-ride service'

A spokesman said: "Based on information provided, the DfT advised Key Cabs their application did not seem to represent a tourist sightseeing function.

"It was pointed out that, if they could provide evidence to the contrary, the DfT would be prepared to reconsider their application.

"But to date, despite calling to express their disappointment; no such information has been received."