Fortunately, it's even more absurd than that. While "finding the right judges" is a lot harder in the UK than say, the US, this is not a case whereby there's ambiguity: you can't sum up with "well, I can see how possibly you could be right so I'll have to go with it."
The "concerns" cited are completely unsubstantiatiable. They're not even slightly close to being feasible. The government has placed a lot of stock in this Section 35 process, but not actually taken the time to understand what they're doing.
They think that they've got it all worked out, but they'll actually need to show at least *something* that makes them right, and they just can't.
It'd be like walking into the supreme court and saying "It's OK, they'll rule 2+2=9 - we found some sympathetic judges!".