The technical panel reviewing the BoM's national temperature records consists, as it should, of recognised experts in mathematics and statistics. Statistical and mathematical analysis of temperature records is not, primarily, a job for physicists. While it is true that Nicol wrote a letter to minister complaining about the review panel, perhaps Lloyd could have asked some other physicists—rather than a denialist—for their views?
Climate sceptics see a conspiracy in Australia's record breaking heat by Graham Readfearn in The Guardian reports on many of these issues and includes a clear argument about why temperature normalisation is required. Amusingly, Readfearn writes:
Also included in the BoM’s statement comes the following graph that overlays 18 different sets of temperature data for Australia—including (in yellow) another BoM dataset which is not homogenised. The graph also includes temperature measurements by satellite. Now either the satellites are also in on the warming conspiracy, or there’s something else going on. I wonder what that might be?