 The Islanders sing her a folk song which tells the story of the Roman occupation ("Testudo").Jack half-responds to Molly's uninhibited advances and consents to take her to London ("I've Got My Feet On The Ground").Ivy almost persuades the Islanders to turn Terhou into a lucrative pleasure resort; Geraldine, Jack and Albert point out what their life would be like ("Holiday Island") and the Islanders realise that Ivy is a menace and imprison her.