Theory:Torchwood television discontinuity and plot holes/The Gathering

I think the implication isn't just that he could tell the police that they're hiding somehing, but that turning him over would cause the police to search the house and find what they're hiding. But that doesn't really work either, because the police have already searched the house, and they already know the police will be back to search again, so turning over Oswald wouldn't make things any worse.
 * The reason that Torchwood couldn't turn Oswald into the police was that Oswald knew too much of their plans. Couldn't they just retcon him?