control a massive worldwide television empire, the Business Diary can reveal.

Mr. Reg Grundy is the man behind two of the world's most popular soap operas -- Neighbours, which can be seen in Bermuda, and Home and Away.

For the last eight years, the secretive Australian has been living in virtual anonymity with his wife Carolyn in a $1.2 million waterfront house set in two acres of land behind the Mermaid Beach Club at Idolwood Cove, South Road, Warwick.

The three-bedroom house, which is said to be nothing special by local standards, although it has a swimming pool, is heavily computerised and contains a huge library.

Unfortunately for the Australian, rather than rent office space in Hamilton, he was using his home as the headquarters for Bermuda-based Grundy Worldwide, Grundy European Holdings and Grundy International (Bermuda).

He put in a planning application to make everything above board after a Bermudian woman who last year failed a job interview with his firm subsequently complained that he did not have permission to use his home as an office.

Now the Development Applications Board has rejected his application for the following reasons: 1) The use of the premises as an office is not permitted within an area zoned Major Hotel/Cottage Colony, and; 2) The use of the premises does not comply with the requirements for a `home occupation...as more than two persons are employed on the premises.

The Board recommended that Minister for the Environment the Hon. Ann Cartwright-DeCouto serve an Enforcement Notice ordering Mr. Grundy to "cease the unauthorised use''.

Mr. Grundy, who is notoriously difficult to contact, could not be reached for comment.

His television programmes have made him one of Australia's wealthiest people, although that's not saying much these days, with the collapse of tycoons like Alan Bond. Mr. Grundy is estimated to be worth in the region of $80 million.

His soaps are particularly popular in Britain where two of their stars, Kylie Minogue and Jason Donovan, have become multi-millionaire superstars and have launched successful pop careers.

Mr. Grundy pioneered the idea of cheap and cheerful soap operas based on American ideas which he adapted for local markets, usually with indigenous actors.

* * * TAX Government's decision not to reduce the 20 percent tax on houses bought by non-Bermudians in the recent Budget will not help the sale of movie mogul Robert Stigwood's magnificent house in Somerset.

Several months after it was put on the market, real estate agents have still to find a buyer for the 24-acre property.

With a listed price of $20 million, it is currently the most expensive property on the local market.

If Government had decided to reduce the tax to 15 percent, as it did for non-Bermudian condos, the buyer would have saved himself a whopping $1 million.

As it is, if the house goes for its current offer price, the new owner will have to fork out an extra $4 million in tax on top of the purchase price.

Mr. Stigwood, who managed the Bee Gees and produced blockbuster films such as Saturday Night Fever, put the estate up for sale because he wants to move back across the other side of the Atlantic.

Local real estate agent Mrs. Margot Cooper, of Cooper Associates, said house prices for non-Bermudians had come down over the past few years.

But she added: "There's still almost nothing on the market for under $2 million.''