Bonfire of the VCR's

As the news of Carmen and Max's affair infiltrates the town, Carmen heads to the city, feigning excitement about a job interview. Max feels guilty, but Carmen insists she's not leaving town because of him, in fact she has no regrets. Furious that Max has broken her niece's heart, Meredith, along with the other local women send him to coventry - except Laura. No-one is brave enough to tell her.

An Administrator is appointed to replace the now defunct Port Deakin Council. Max is at the press conference where Morton Tregonning is introduced to the world, revealing plans for a tunnel to connect Pearl Bay and Port Deakin. Meredith fears for the local economy and surprisingly unites with Bob, when he calls for a complete Port Deakin boycott.

Dennis Dreeble, former nature documentary presenter turned disillusioned guru burns all the TVs and VCRs members of the commune have been secretly stashing. Dennis and Harold form an unlikely alliance and it's Harold who eventually helps his hippie nephew to mellow.

The townsfolk scratch their heads when Bob makes a 180 degree shift in attitude to Port Deakin. Bob couldn't be more supportive of the new Administrator when Morton reveals he had no intention of stealing Bob's local thunder. In fact he wants to join forces with Bob and dedicate the tunnel to him.

Carmen returns on the heels of Laura discovering the truth. Carmen takes full responsibility for the affair, describing Max as one of the most sensitive men she has ever met. She would have never let him go if he wasn't so obviously in love with Laura. While the town's women forgive Max immediately Laura struggles to let him off the hook so easily until she witnesses a shattered Max: Carmen did leave town because of him after all.