CASA in 2012 suffers the same problem as the various Police services in our nation. Years of political knee-jerks have caused them to be so isolated from the community they serve, that they are completely out of touch.
As we all know, years ago many a youngster would commit a misdemeanor which never got to court but was resolved by a kick in the backside from the local Police sergeant, and a stern talking-to. There ended many a potential career of crime, as the words of wisdom (and sore behind) were not forgotten.
Likewise DCA/CAA/DOT in years gone by. Because their personnel were out and about (flying the Bonanza/310/Aero Commander or whatever) they saw and heard a lot that was going on in the industry, and, where warranted, offered suggestions to curb errant behavior. This was generally appreciated by industry, and everyone got along just fine. Note that this was not just in flying ops, but airworthiness too. Add to that the absolute gems that were drawn from articles in the Aviation Safety Digest.
Nowadays CASA are considered by many to be the "Fear of Flying" club, and all "advice" is promulgated through publications that seem more focused on advertising, and articles that may as well be written by schoolkids. Result - the gulf between industry and regulator grows deeper and wider, as does the fear and suspicion.
Our legislators in Canberra continue to express shock and outrage whenever an avoidable/predictable tragedy occurs, and resolve to "give CASA increased powers" (read remove them even further from reality). The only part of CASA that seems to be growing is the Legal Services Division, and for all the wrong reasons.
Meanwhile our 20+ year "transition" to a "new regulatory framework" drags on, with the result that only the LSD understand it.
For once I have to admit that this is something the Kiwis got right. Their regs (and to a degree their regulator) have a far more practical approach.
In summary, this problem didn't need someone to be creating a file on Barry, or writing letters or emails. It needed someone to march into his business, line up Barry and the post-holders and state "Barry we know you have a long history as a pilot, but regrettably your inability to satisfy the CASA class one medical standard means that your commercial flying days are over, and you (turns to Chief Pilot) will ensure Barry obeys this, and you (turns to manager/CEO) will ensure that commercial operations are conducted only by appropriately licenced persons".
It would have all taken less than 30 minutes.