Melbourne, Aug. 27 : THE United Nations special rapporteur on indigenous rights has said there is "entrenched" racism in Australia.

James Anaya didn''t pull any punches after his two-week visit of the country, saying the Rudd Government should reinstate the Racial Discrimination Act in the Northern Territory "right away" because the intervention into remote Aboriginal communities is clearly discriminatory.

"It undermines the right of indigenous peoples to control their own destinies, their right to self-determination," news. com. au quoted him, as saying.

He also slammed Labor''s policy of demanding 40-year leases over indigenous land before building new houses and said the stolen generations should be paid compensation.

The Racial Discrimination Act was suspended in the NT by the former Howard government so the intervention''s more extreme measures, such as quarantining welfare payments, could be rolled out.

The Rudd government has promised to introduce legislation to reinstate the act in the Spring session of parliament, but wants to continue many of the compulsory measures.

"It''s a mistake to assume that indigenous peoples ... aren''t capable of taking care of their homes," Professor Anaya said, adding "Indigenous control can be appropriate to indigenous peoples'' development, to their aspirations, to indeed being in control of their lives like all others."

As for compensation for indigenous people taken from their families by government agencies, the UN rapporteur was unequivocal: "There should be reparations," he said. (ANI)