Believe it, and I have a nice bridge for sale...
While the cast & soundtrack are genuine, let's not forget these are blokes (nudge-nudge-wink-wink), and this episode was never, "I repeat", never broadcast in a children time slot. The double-speak in there was all-too-common at the time - we're talking 80s here after all; remember Benny Hill? He was doing this kind of stuff long before. The producers would have been seared in the press and the House of Commons; career suicide!
It is a tongue-in-cheek sidecut that was meant for internal consumption, probably scripted for a staff party, or late night audience on restricted channels. How it got out onto the Internet is like anything else. Someone kept a copy and here we go. Smashingly funny if you remember the original program - I watched it often with my kids as it was filled with double entendres, as many British shows are...