Just a couple of statements in answer to some of the comments above.
There are only six ATOs in the NSW area (including the one in the incident) listed on the CASA website.
With my limited knowledge of what they are all doing for a crust, I still have the feeling none of them fly an AS350 for a living. Therefore, no one up to the minute current on the machine.
A flight test calls for the student to demonstrate proficiency in the possible emergencies for the aircraft type. One of those for the 350 would be hydraulic failure.
What do you think your chances are of getting a CASA FOI who is available and current?
Nigel, I must admitt, I agree very much with your comment regarding training for emergencies that very, very rarely happen. It is a requirement that is almost out of date with todays machinery. I suppose the big problem is that they can't be ruled out altogether so you need to know what to do in case it does occur. Shame there aren't more simulators approved for this in Aus. I have just come back from the Bell training school in Texas after doing the 407 course again. Great bit of training but carries no weight with CASA, I've still got to do a BFR.