Well today I take back every generalisation I've made about Government employees, particularly those of Queensland Transport. As a group they do indeed suck, but I just had the vehicle inspection done by two guys who were knowledgeable, intelligent, friendly and incredibly helpful - so there must be a few real people working for them.
They spent 45 minutes both looking over the bike and talking me through the best way to approach the dispute (this is what they deal with all day every day), offered plenty of advice and volunteered an extension on clearing the defect notice if I haven't had the issue resolved by the time the 28 days is up. I was also given a business card with the inspector's direct line and mobile number in case I have any problems or need any further advice.
I will be approaching the workshop again this afternoon armed with the defect notice and hopefully will have some joy. Failing that the opinion of both the QLD Transport inspector AND the person I spoke to at the Small Claims Tribunal is that I will get all my costs back.