Ginger - your post smacks of jealously and the desire to create a scandal.
For a start, this practice cannot be "theft" if the sortie is correctly authorized. Secondly, what is demonstrated to a CAA examiner is a series of manoeuvres that service pilots have to perform regularly during routine training sorties, the only difference being that a CAA examiner has been invited onboard to watch. Sometimes the examiner will have to sit through hours of other training that is irrelevant to them, before watching the instrument flying portion of the sortie. If a sortie is generated for pilot currency then it comes from a pot of hours intended for exactly this type of training anyway.
You may ask why this type of training is not done in simulator and the answer is that, unlike the airlines, the MoD have not paid for simulators with the fidelity needed to dispense with the requirement for routine pilot training in the aircraft. When we get new aircraft and Level D simulators then it will all be done synthetically.
As to pilots that have PVR'd - if the service wishes to employ them on flying duties up to their exit date then they must continue to meet all the training requirements. It would be churlish (and probably illegal) to single-out those that have PVR'd by prohibiting only them from taking an examiner along on such sorties. Personlly, I would have got the licence before PVRing, but I'm cautious like that.
Now that I have explained how the flying is generated, all that is left of your case is an objection to allowing external examiners to watch servicemen at work. This surely cannot be the crux of your argument; do you also object to NVQ assessors etc?