Organisers of St Patrick's Day festivities in Belfast are considering legal action against the city council over its refusal to fund this year's parade.
Unionists strongly opposed the carnival proposal, complaining about the presence of Tricolours at previous parades, which they claimed were solely nationalist events.
At a meeting on Tuesday night, Belfast City Council voted 23-17 against funding. A unionist-nationalist split meant the decision had rested with the Alliance Party, which voted against allocating £22,500 to the St Patrick's Carnival Committee and £7,500 to the rival group, the St Patrick's Heritage Association.
The Alliance Party said both groups were "proposing conflicting marches, neither of which were capable of appealing to both traditions in the city".
Ms Caitriona Ruane, chairwoman of the St Patrick's Carnival Committee, said she was seeking legal advice about this "disgraceful decision".
"The committee feel that we have been discriminated against. This is blatant anti-Irish racism and it is very disappointing in this new millennium and political era.
"We will be consulting urgently with our lawyers. We will also be contacting the Human Rights Commission, the Irish Government and the Assembly."
The SDLP said it was disappointed with the decision not to fund either parade. Ms Catherine Molloy, the leader of the party's council group, said: "The SDLP believes that St Patrick's Day 2000 is an important religious and community occasion for Belfast and wishes it to be celebrated and enjoyed in an inclusive way by all the citizens and traditions in the city."
The Sinn Fein president, Mr Gerry Adams, said the council decision was "a step back to the dark days of unionist misrule and domination", which breached the spirit of the Belfast Agreement.
However, Mr Mervyn Jones of the Alliance Party insisted the funding was withheld because both groups had failed to ensure their celebrations would be open to all sections of the community.