TC
Not sure why you conclude this must be "for hire or reward" and hence requires an AOC. There are other voluntary groups in UK providing both fixed and rotary wing resources to other agencies and CAA has cleared their activities as not being aerial work, not requiring commercial pilots or an AOC. Obviously this give them no breaks from the low flying rule, etc, but anything they do has to be planned to be legal and safe within those rules.
Also, just because pilot time & machine cost is given for free does not mean the pilots are inadequate in some way. In addition to the comment about hrs being more important than CPL/PPL (though as JP is CPL I am not sure why that old prjudice was dragged out and beaten-up), I know one voluntary group that has many current commercial pilots who give time generously to command their, or someone else's, aircraft. Included amongst these pilots are big tin pilots, big tin training captains, current CPL(H), ex military, ex-north sea heli and at least one ex SAR pilots. There are a number of PPL (both sort) also and typically it is the latter group that also own the aircraft and therefore take the hit for machine cost.
My view? Get off his case. He is doing something that the fire service concerned appear to want, he has CAA and other rules with which to comply, and from the posts of the only chap who is talking to him he seems to be taking things seriously and sensibly. If his planned activites are inside regulations and they are safe then "hat's off" to him. If they are no, he has so many people watching intently that he is going to fall fould of the CAA.
Of course, those with experience (and I am being serious, not sarcastic) could volunteer some valuable time with him to help set this up, get the right SOPs, etc.
I think the comment about "dedicated resource" was right - too costly. If the Police machine is doing nothing, then use that. But is it so bad to have individuals volunteering their machiens, at their own cost, to help out? Singles:- I know; but they are what individuals generally (not always) own. What if this was seen to be so useful that commercial pilots - such as yourselves - were contracted to command the flight (paid, etc) - not a full-time job but adding to the flight time and pay that you do get?
As an industry, taking a "glass-half-full" attitude and helping with this seems to me to be much more likely to bring more helicopter work into the UK.