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Channel 4 released a statement confirming that the word had not been broadcast in “live” coverage of the house, but a version of the incident would be screened tonight.
An Endemol spokesman said today: "This vindicates the procedures we have got in place and we have acted accordingly."
Emily had been one of two contestants in the running for eviction tomorrow, but she was expected to survive the public vote.
The student has acknowledged that she is politically right-wing, and has said she will vote for the Conservative Party at the next election and has "no time for benefit cheats".
Hugo Swire, the Conservative Shadow Secretary of State for Culture, Media and Sport, applauded Channel 4’s decision to remove her from the show. “Racism has no place in modern Britain," he said.
The racist comment was made last night, while Charley was dancing and gyrating her hips. Emily said to her “You pushing it out you n******?”.
When confronted by bemused housemates, Emily defended herself by saying “I’m friendly with plenty of black people” and suggesting she often used the epithet.
Charley, 21, said she was “shocked” to hear the word, but promised Emily she would not make a complaint.
Asked if it was a big deal by Emily, Charley predicted that Big Brother producers would not tolerate the phrase. “Not for us it ain't,” she replied.
Charley, the cousin of Kieran Richardson, a Manchester United and England footballer, explained on her Big Brother profile that racism was one of her greatest dislikes.
The Commission for Racial Equality said it welcomed Channel 4's swift reaction. “This incident will show everyone that racism must never be tolerated in any way, shape or form,” the organisation said in a statement.
“We can see from this incident that there is no stereotype of a racist, they come from all walks of life, education and social background. Two series of Big Brother, two racist incidents - this just shows how prevalent racism is in Britain today.”
Channel 4 quickly expelled the contestant after Ofcom’s criticism that they made "serious editorial misjudgements" in handling the incidents involving Shetty in the previous series of the reality programme.
The television watchdog received a record 45,000 complaints from viewers after the Indian actress was abused by British housemates.
Jade, a contestant returning from an earlier series of Big Brother, called Shetty “Shilpa Poppadom”. It later emerged that a group of contestants had made references to the word “Paki” in a series of word games that were not broadcast.
Ofcom’s punishment saw Channel 4 reveal its findings at the start of this series. The station was due to air an apology again before tomorrow’s eviction show, which will no longer take place. Channel 4 say they will reimburse anyone who voted for Emily's rival Shabnam to be evicted.
Channel 4 has been at the centre of a string of recent controversies and Gordon Brown, the Prime Minister in waiting, is thought to be considering withdrawing public funds from the station.
As well as the previous series of Celebrity Big Brother, Channel 4 have been criticised this week over the airing of a documentary containing footage taken from the crash scene where Princess Diana died.
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