This goes both ways, doesn't it?
TFA says "significantly representative of rights holders affected by the scheme". So how much is "significant"? 100? 1,000? 100,000? It doesn't matter.
Imagine that Mr Pirate buys one of these licenses, (I presume there's a licensing fee). Let's say he picks the "popular music" category. And then he gets a few mates (100, 1,000 or 100,000 - whatever) who create "works" in the category so that he can represent them. Those works don't have to be terribly good, someone singing "yo ho a pirate's life for me would probably count.
That's it. He now has a license to distribute *all* media in that category, for any fee he likes. Perhaps he could choose a fee of zero.
TPB can set up in this country, with the blessing of Cameron and all his cronies.