Chris,
I've read what you've been saying and it's good that there's an effort on the part of the law to try to get bikes to their rightful owners. The thing that occurs to me is about accessibility of the data of the registered bikes and their status. What I'd like to put forward is to put that data onto an XML based API. This might seem like gobbledegook but what it means is that anyone would be able to connect and lookup that data. (They could perhaps have to register to get it so it's not necessarily a free-for-all.) This means that all cycle forums and people getting websites would be able to have their own widgets on a website to check the status of a bike. It wouldn't mean that everyone's personal data is available, but to be able to get a person's name, telephone number, county, bike make, bike model, bike colour, bike code number and bike status would be enough to satisfy the need. You could even consider photographs.
This would be a benefit because it would mean the law would still be providing the service but not have the "hassle" (forgive me) of chasing up all the enquiries. It would also mean that the lookup systems are widespread, removing the obsticle of people doing the lookup. Sites like
eBay and other vendors would be able to do checks. Once the system is so freely available, it cuts the crime because so many people can verify whether a bike is stolen, thieves are less inclined to steal them.
In short, make the data available to as many people as you can and those who want it to work will make it work for you.