The programme was broadcast on BBC Two on July 16 last year and received several viewer complaints. However, in its ruling published on December 15 2006, the BBC's Editorial Complaints Unit said: "As Jeremy Clarkson supplemented the term 'gay' with a phrase which is rhyming slang for 'queer', there was no doubt that it was being used in the sense of 'homosexual', and was capable of giving offence.
"In this instance there was no editorial purpose which would have served to justify the potential offence and the complaints were therefore upheld... the executive producer of 'Top Gear' has reminded the presenters and the production team of the importance of avoiding derogatory references to sexual orientation."
The media regulator responded by saying that any use of the word "gay" which results in a negative portrayal of homosexual men and women can "give rise to concern".
Ofcom said that it was aware that some in the homosexual community were sensitive to the word being used in a pejorative way, and to use it as a term of ridicule ran the risk of giving offence.
The regulator added that there was also evidence that for over the past thirty years or so a second meaning of the word has gained currency, and that the current edition of the Oxford English Dictionary states that in this second usage "gay" means foolish, stupid, and socially inappropriate, or disapproved of and lame. The Dictionary does not consider this meaning of the word to be offensive, the regulator stated.
Ofcom went on to condemn the use of the phrases but let the programme off the hook saying the BBC's response had been adequate.
It said: "In this edition of 'Top Gear', the presenter's use of a Cockney rhyming phrase made clear he intended to give a particular meaning to the use of the word "gay" by the member of the audience, i.e. not to restrict its meaning simply to foolish or stupid, but clearly linking the reference to homosexual people.
"This, in Ofcom's opinion, meant that the use of the word became capable of giving offence. In the context, there was no justification for using the word in this way. We note, however, that the BBC has taken steps to remind the production team and presenters of the importance of avoiding derogatory references to sexual orientation. In light of the ECU ruling and the BBC's actions, we consider the matter resolved."
This is not the first time 'Top Gear' has provoked complaints from viewers. In February, the programme courted controversy, when a stunt involving a dead cow strapped to Clarkson's car roof prompted 91 complaints from concerned members of the public.
The previous month, Ofcom received more than 20 complaints about comments once again made by Clarkson about fellow presenter Richard Hammond's high-speed jet car crash, which has attracted widespread criticism from UK road safety groups.
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