Josmets, I've just had another look at your pictures. I can't see anything obvious within them but I am no expert at all.
With the skin colouration it does look pretty normal as parrots have thin skin so the pinky/red tinge may not be anything to overly worry about, it may appear a bit more red if your birds using his beak in that area alot. Ollies skin was similar to that when all this first started back in 2011 but eventually started to take on a more irritated/inflammed appearence where as Harlies as far as I can tell with minimal handling looks like its maintaining a steady pinkish and has never looked particuarly inflammed, just dry.
However I still feel the localized picking is a sign there is something medically wrong, particuarly in that area as it is rather random and not typical of a straight out behavioural issue. As it has been going on so long it may also have become a bit of a habit but it is fair to say there is still probably an underlying initial cause.
In the meantime whilst you are getting the money together for a vet consultation, just make sure his environment, routines, diet etc are the best you can make them. Loads of toys, baths, training etc may help deflect his attention away from his feathers.
Also you will lose nothing by e-mailing the pictures you've shown us round the vet surgeries, there are a few caring vets about who may offer some advice although most will probably not be interested if you are not registered with them (if registration is free then register, even if you never end up seeing that particular vet).
Title your e-mails FAO and then the name of the bird vet as it will have a higher chance of getting to the vet rather than not getting beyond reception. Tell them about your concerns and that you are scraping the money together for a consultation and was wondering what information they can give you about diagnostic testing they may deem necessary, costs and most importantly if they can help you with general advice in the meantime. Keep it short, clear and to the point, bullet points are your friend here. Vets dont have the time to spend reading through an essay, if they want to help they will e-mail you back asking for more detail.
Like I say, the majority are busy and wont be interested in helping someone who isn't already a client so don't expect a reply but even if you find one person who is willing to advise you it will be worth your trouble.
I've sent off about 10 e-mails so far and only had 2 responses, neither of which were particuarly helpful, one guy offered a free assessment in exchange for a donation to charity but he wanted to focus on psychological aspects which we dont think it is. I may still take him up on the offer in the future though, the other guy wanted to charge me a small fortune for an internet consult when I could see about 3 vets face to face for that price. I have a load more e-mails to go out next week now I have the lab reports for my birds.
Dont give up seeking answers and good luck
