Deano,
Not sure how your examiner is going to create "real" emergencies - surely they are all going to be simulated.
I passed my skills test a fortnight ago. In the pre-test briefing, the examiner told me that I should assume that I was P1 all the time unless told otherwise. He told me that there would be some practice emergencies and that I should still assume P1. He then said that in the event of a real emergency taking place during the test, I should still assume that I was Pilot in Command, and should continue to do so until if/when the examiner felt that "his own @rse was on the line" at which point we would asume command!!!
Perhaps this is what the examiner was telling you too.
Mr. W