His obsession prompts him to emulate the mannerisms, hairstyle and fashions exhibited by Newton-John's Grease co-star, John Travolta, in Saturday Night Fever, although he admits to not having seen the latter film because of its X-rating.
When Tim confesses his inability to dance, Graeme teaches him the Disco Heave, part of which involves miming vomiting induced by hearing a Max Bygraves record.
But, once the teachings done Graeme was utterly revolted by the prospect of "snogging when the impatient Tim gets carried away with his smutting behaviour and hot-headedly decides to go out dancing by himself (using his "smoky urban charm" for some "choreographed canoodling, heavy petting and I'm gonna do it my way!").
But Bill is more interested in organising his gimmick and the idea of a mixed dancing competition to be televised by the BBC, which will provide prize money of £5,000.
Greame surmises that no one will be willing to perform mixed dancing in front of the cameras, so the competition will be declared null and void and the prize money will therefore go to him as organiser which is Bill.
[2] The episode was filmed in early 1979, when disco music was at its height, and movies like Saturday Night Fever and Grease were box-office hits.