The SDLP has removed the party whip from a Derry city councillor at the centre of a storm over comments he made about a Scottish Sinn Fein colleague.
The party has now confirmed it has proceeded with disciplinary measures against Greater Shantallow councillor Jimmy Carr following an internal investigation.
Sinn Fein called for Mr Carr to resign after he criticised fellow councillor Eric McGinley on the Bogside Artists Facebook page.
He took issue with the fact that Mr McGinley – whom he referred to as a "Scotchman" – raised matters during a discussion on funding for the murals in the Bogside.
He also claimed he couldn't understand Mr McGinley because of his accent and that the Scottish councillor needed subtitles.
Sinn Fein branded the comments extremely offensive and even racist and called for Mr Carr to stand down.
Mr Carr was initially unrepentant in a radio interview aired last Friday but within hours had issued a statement offering an unreserved apology. In disciplining their councillor the SDLP has stopped short of asking him to vacate his seat on the council.
A SDLP party spokesman said: "Councillor Carr made a full and frank apology for rash and insensitive comments he made in the media as well as Derry City Council chamber last week.
"He is deeply sorry for allowing his genuine frustration about an issue of civic principle to cause him to act in a manner which is unbecoming of himself and the party.
"As a result the party have taken swift action in respect of comments which run contrary to the SDLP ethic of inclusion and respect for diversity.
"Councillor Carr will lose the chair of the Environmental Services Committee and the party whip for a period of time."
He added: "We believe this is an appropriate sanction to take and want to draw a line under this issue and allow our party representatives on Derry City Council to get on with working hard for all the people of the city."
Sinn Fein said the sanctions did not go far enough.
Responding to the action by the SDLP, Sinn Fein group leader on Derry City Council, Paul Fleming, reiterated his party's view on the issue.
He said: "Our party stance remains the same today. Councillor Carr's position as a public representative is untenable.
"If these remarks had been directed at a member of the Polish, Portuguese or any other nationality there would rightly be a hue and cry from all sections of society.
"The fact that Eric is Scottish and a Sinn Fein representative does not diminish the seriousness of these remarks."