A spokesman for Larne District Orange Lodge said the council had provided bunting and put it up over the summer months for years.

"But in a major change of policy the council have decided to no longer provide red, white and blue bunting," he said.

"The Twelfth demonstration will be held in Larne in 2009 and it will bring a huge influx of people into the town and give a real boost to the local economy.

"Asking us to give up the red, white and blue bunting would be like asking people celebrating St. Patrick's Day to replace green with another colour."

The Order challenged the council to say whether there had been any complaints about the bunting and if the Equality Commission or Local Government Auditor been involved in any way in the decision.

A spokeswoman for Larne Borough Council said it acts at all times in accordance with good relations and shared future policies in ensuring the town centre and public spaces "are as neutral and welcoming to all sections of society as possible".

The council had decided not to directly finance the purchase and erecting of bunting "for any tradition", she said, but it continues to offer general festive bunting to event organisers. They can also apply for funding for cultural activities, she added.

The decision is set against a backdrop of continuing support from various communities and event organisers who work with the council to ensure that the July 11 celebration is enjoyed safely and that events are "as inclusive as possible", the spokeswoman added.

She said the council was also working closely with the Grand Orange Lodge of Ireland regarding a two-week festival for 2009.