A row has erupted within a mainly nationalist district council over a decision to replace the Union flag with a corporate emblem.

A proposal was put forward by the Social Democratic and Labour Party (SDLP) during a meeting of Down District Council on Monday night to fly only the council's own flag on its premises.

The motion was passed despite bitter opposition by unionists, who described it as "insensitive, divisive, and provocative" and said it would severely damage community relations in the area.

A crowd of people waving Union flags, which are flown from public buildings on specific ceremonial occasions, staged a protest outside the building during the meeting.

SDLP councillor Eamonn O'Neill proposed the motion and said national flags, as displayed in Northern Ireland, had come to be seen as divisive and territorial, and as implying a political taunt.

He said the idea of having a council flag had been to promote a neutral environment.

"There is always problems with flags. They do get emotional responses to the flag issue and it can become very divisive. By removing it as an issue we would hope to be able to concentrate on real politics. "

Mr O'Neill insisted his proposal was aimed simply at finding a compromise for what he said was a potentially divisive problem.

He rejected unionist accusations of nationalist bias, and said that by insisting on the display of the Union flag, it was unionists who were intent on keeping alive the old divisions within the community.

However, Billy Alexander of the United Kingdom Unionist Party was incensed by the proposal.

"It's the worst motion that I have ever heard come before any council. Protestants have been alienated far too long and this is only going to add to their alienation."

Councillor William Dick of the Democratic Unionist Party said that far from defusing the flags issue, the proposal would only inflame it.

"The motion has touched a raw nerve within the community. And there are people out there who could react in a way which we would not want them to react Councillor O'Neill will be held responsible for that."

But the SDLP council chairman Peter Fitzpatrick insisted the motives behind the proposal were honourable.

"This council has set a precedent for other councils in Northern Ireland, in that we have made our place of work, even the council offices, politically neutral by flying our council flag. We are not in any way aligned to one political side of the house or the other."

'Political decision'

Council vice-chairman Ulster Unionist councillor Albert Colmar, described it as a political decision in which the SDLP, under pressure from Sinn Fein, were pandering to what he said was "extreme nationalism".

"This is going to send out the worst vibes. Those who have tried to be constructive to represent the whole of the community have found their feet cut away from them."

Mr Colmar later tore off his council tie in a gesture of protest and said he would not wear it again unless the motion was withdrawn.

Ulster Unionist Gerry Douglas believed it was a provocative act which had cast a long shadow over the prospect of future co-operation between unionists and nationalists in the council area.

"We should not be asked to remove the Union flag from public offices, where they are flown throughout the rest of the United Kingdom, on public buildings. That's parity of esteem. Any Britishness has to be removed and this is the start of it."