this skit was a continuation of the new character craig ferguson introduced named sir cornwell barnes, a very stuffy english actor. this was introduced as one of barnes' acting jobs, the very famous british television series called 'ding dong vicar' in which the fictional barnes played a priest who's daughter (? priests dont have daughters!) is in her bedroom with her boyfriend.
the boyfriend (also played by craig) is inviting her out to go fishing, then accidentally gets his fishing pole stuck on her shirt and while trying to unhook the pole falls on her in a suggestive manner, at which point the priest walks in on them. he is terribly upset and thinks the worst and get really mad. hilarity ensues.