Gormlus appears behind the Sergeant and hits him on the head with a shovel (Mary Whitehouse was furious). The other police officers turn around and shoot Gormlus dead. Sarah and Gemma escape to warn Scarsdale that the police are coming to kill him. They eventually escape in a very slow moving vehicle.
The Fixer gives Teemis evidence that the police are corrupt, brutal and inefficient, and she pays him. After he leaves, she reports the situation to the Nipponoids, who are delighted. Scarsdale gathers the survivors and broadcasts a speech demanding that the police be disbanded as they are enemies of the people. Teemis announces that the police force will be privatised. Zantra resigns on principle.
The remnants of the police, now unemployed and poverty-stricken, trudge into the caves. The Chief suggests that they could work in the mines, but the Sergeant is terrified that the strikers will kill them. The company is now insolvent and is bought by the Nipponoids, who sack the director and bring in their robots to work the mines.
Nipponoid police robots march into the caves. They shoot a former police officer as a vagrant, then carry on. Scarsdale makes a speech to the remaining strikers, saying they have beaten the police and the company, and now they can bring down the government. Suddenly the robots burst in and kill Scarsdale. Most of the miners flee, leaving Sarah and Gemma alone.
Sarah confuses the robots so that she and Gemma can escape. Sarah meets the Director, who says that he is now unemployed and homeless. Sarah says that now he is in the same boat as the miners and the police, they all have to work together. The Director agrees, and they go off to look for surviving miners. Meanwhile, Gemma goes to find the police.
Teemis and the Nipponoids celebrate the increase of the share price as the robots patrol the caves wiping out survivors. The Fixer demands more money but Teemis refuses, saying that he is as bad as Scarsdale.
Gemma finds Zantra alone in the corridors, and together they meet the Chief, who is grateful for Zantra’s opposition to privatisation but says it hasn’t done either of them much good. Sarah arrives with the Director and a few miners (including “Randy” Ron Tarr). Sarah tells Zantra to lead them all against Teemis, but he says that rebellion is against his principles. Suddenly, the Fixer arrives and offers evidence of Teemis’s corruption in return for money. Zantra tells him not to be so ridiculous: none of the refugees in the caves have any money, and telling the truth is the right thing to do. The Fixer laughs and says that isn’t how the world works. Then the police beat him until he reveals his secret, despite protests from Sarah and Zantra. “This is how the world really works”, says the Sergeant. Knowing that Teemis has conspired against the public for private gain, Zantra agrees to lead the rebellion. The police and miners arm themselves, while Sarah builds a device to disable the robots.
The rebels storm the government offices, blowing up robots as they go. Gemma (now played by a double and only seen from behind) ducks into a side corridor and is not seen or mentioned again. After fighting their way through the robots, the rebels burst into Teemis’s private room. Zantra shoots her pet snake, and when she says that he has gone too far, he replies, “perhaps not far enough” as he points his gun at her head. He then says that she will be tried for treason, and the Chief reminds her that she reintroduced the death penalty.