A Belgian parliamentary committee has agreed a measure aimed at withdrawing public funding from political parties which use racist propaganda.

Under the proposed bill, members of the committee would be able to refer alleged racist material to Belgium's highest administrative court, the Council of State, which would have the power to reduce payments.

Correspondents say the bill has become a controversial issue ahead of elections next June, with polls suggesting the extreme right Vlaams Blok party could make further gains at the expense of the traditional parties.

The proposal goes before the full House of Representives next week when it is likely to be approved.

Under Belgian law, political parties are restricted from receiving private money and so receive funding from the state with amounts based on election results.