BASIL NEWBY'S powerful pink empire has earned Blackpool the title of Gay Capital of the North.

Basil's reputation for providing the gay community with top-class entertainment was founded on the success of the Flamingo Club, now the largest seven-days-a-week club in Europe. In the 1980s the club featured artistes such as Lily Savage, Diana Dors, Pat Phoenix and Su Pollard. "I paid Lily £75 for the week," laughs Basil.

And the idea for his celebrated and outrageous Funny Girls' transvestite cabaret bar -- the piece de resistance of Basil's gay dominion -- emanated from a dream he had while travelling on a plane.

"I had been to similar venues in Bangkok and Toronto, and then I had this vivid dream that I would open such a place in Blackpool," he says.

"This dream rattled around in my head for about 12 months, but I couldn't settle. I got negative responses from people I discussed it with. They said it would fall on its arse in Blackpool."

It didn't. In fact, it worked so well that people queued up nightly to see the show. And three years ago, an ITV television documentary gave Funny Girls a nationwide focus.

Seven years after the opening in Queen Street, Basil decided it was time to expand and move to bigger premises at the former Odeon cinema in Dickson Road.

"Since the re-launch in April, we are getting up to 2,000 people in on Saturday nights. This is double the amount we got in Queen Street," explains Basil.

The new on-site Bar.b bar for young trendies is proving popular and, during the next 12 months, the entrepreneur aims to re-house the camped up Flying Handbag pub and the legendary Flamingo Club from their Talbot Road positions into the Funny Girls building.

Leather and denim boys are still flocking to Basil's cellar haunt, Pepe's bar in Talbot Road, where Basil once had the honour of being crowned Miss May Queen.

And three years ago, his upmarket, nine-level Faye's restaurant opened in Queen Street.

"The gay community love Blackpool for the variety of entertainment the resort offers," says Basil. "They come here to spend their money. I like to call it the 'peaceful £1' rather than the pink pound."

Whatever you call it, the town's profits have been pushed up tremendously by the success of this Blackpool-born millionaire's pink market.

Not a bad achievement for a former Pontin's bluecoat who used to run a small fancy goods shop in Chapel Street!