Unionist councillors have voted to give £100,000 in funding to loyalist bonfires, despite the burning of posters of nationalist politicians and an effigy mocking Catholic suicides.
Earlier this year Belfast City Council choose eight loyalist areas to take part in a pilot project to encourage better management of July 11 bonfires.
The scheme followed concerns about an increase in the number of bonfires in 2004.
Further concerns were raised over the health impact of thousands of tyres being burned and the presence of paramilitary gunmen at the events.
A council report into bonfires at the eight funded sites has found:
- UVF gunmen took part in a 'show of strength' at Pitt Park in east Belfast
- an effigy mocked suicides of Catholic men in Ardoyne on the Westland bonfire in north Belfast
- election posters of Sinn Féin candidates and SDLP deputy leader Alasdair McDonnell were burned at Annadale, south Belfast
- here were multiple burnings of Irish tricolours and erections of loyalist paramilitary flags
- there was also a UDA show of strength at a non-funded bonfire at Ballysillan in north Belfast.
The cost of the scheme included council funding of £48,000 and £60,000 in repair costs.
But despite receiving nearly double the number of bonfire complaints compared to 2004, unionists have voted to go ahead with funding for even more loyalist bonfires next year.
"Many of the complaints expressed frustration that the council would fund/support bonfires and that they had not taken sufficient account of the health effect caused as a result of them," the report stated.
"This view was supported by views expressed by some community groups to council community workers."
Sinn Féin councillor Paul Maskey said: "Unionists are funding anti-Catholic hatred by supporting these bonfires.
"We want to move away from bonfires and to promote community festivals. It is entirely unacceptable that unionists want to fund sectarian hatred in this way."
Ulster Unionist Jim Rodgers said he supported the project.
"There was a problem with Pitt Park with masked and armed men appearing for a show of strength but I don't think you can blame the organisers and I think they should be given a second chance," he said.
SDLP councillor Tim Attwood said his party would not support the funding of any bonfire that featured paramilitarism.
"We want to support the positive aspects of this project but there must be penalties for any site which promotes anti-Catholic or paramilitary emblems," he said.
The issue is due to be debated during a full council meeting on Monday.