A councillor suspended by Labour over racist comments about an SNP Cabinet Secretary is still part of the ruling administration in his local authority.

Jim Dempster, who admitted making “offensive and terrible” comments about Justice Secretary Humza Yousaf, attends joint group meetings of the SNP/Labour coalition on Dumfries and Galloway council.

Yousaf said yesterday: "That Cllr Dempster has been quietly allowed back into the fold without any consequences for his actions says it all. It makes a complete mockery of his suspension pending investigation."

Dempster was suspended in March last year over remarks about Yousaf - at that point the Scottish Government’s Transport Secretary - during a meeting with officials.

A report revealed that Dempster, the councillor for Mid and Upper Nithsdale, claimed that Yousaf "did not give much regard to road transport issues in the south west" and had been "largely anonymous in his presence".

An official responded by saying that Yousaf had met residents in the village of Springholm and attended the South West Transport Conference, after which Dempster said: "He may have been at Springholm but no-one would have seen him under his burka."

The comments led to Dempster made a grovelling apology to Yousaf. "I do take full responsibility for my actions, and offer you a full and humble apology. I know how offensive and terrible what I said will sound, but this stupid and ill-judged remark is not representative of who I am,” he said.

Dempster also referred himself for diversity training and planned to apologise to the officials at the meeting.

However, fifteen months after he admitted to the comments, which were made in front of witnesses, UK Labour has not concluded his disciplinary case, a delay Yousaf has previously blasted.

This newspaper can now reveal that, despite the suspension and the outcry, Dempster remains an integral part of Dumfries and Galloway council as an independent.

Labour's Elaine Murray, who is the council leader, told this newspaper that he is part of the administration and attends joint SNP/Labour group meetings.

She said Dempster’s comment had been a “very stupid joke”, but claimed: “There’s a great deal of anger about the way Jim has been treated, that his case has not been resolved.”

Asked how she would feel if he was expelled from Labour, she said: “I would be disappointed.”

She said his remark had been “culturally insensitive”, but added: “I think he has probably done his time. He has served his sentence.”

Dempster also continues to be chair of the council planning committee, for which he receives a £4,369 bump on top of his £17,470 salary.

In March, responding to the UK party delays in resolving the case, Scottish Labour leader Richard Leonard said: "The case is being dealt with through due process. I'm disappointed that it's taking as long as it has - the person involved in the complaint is still suspended from the Labour Party and I hope this will be resolved very quickly indeed".

Yousaf told the Herald on Sunday: "As I've said all along, there's nothing to investigate. The case is cut and dry and Jim Dempster has admitted to his Islamophobic outburst towards me. He should be kicked out of the Labour party for good.

"For his council colleague to dismiss Islamophobia in such an offhand manner simply adds insult to injury. There is a rising tide of Islamophobia across the world and failing to take it seriously is a dangerous approach."

A Scottish Labour source said: "This sends out completely the wrong signal. There should be a zero tolerance approach to racism. We need to get our house in order, and should start by dealing with disciplinary matters ourselves."

Dempster did not return this newspaper’s call. Scottish Labour declined to comment.