Are Irish jokes still racist?

A man walked into a Dublin bar and saw a friend sitting with an empty glass.
‘Paddy can I buy you another’, he asked, to which Paddy replied –
‘now what would I be wanting with another empty glass?'”

ConservativeHome reports that a councillor in Medway Kent was ordered to pay compensation on racist grounds to an Irish-born union official for telling this joke. Allowing for context, surely a piece of nonsense in 2010?

Former BBC journalist and manager in Belfast, Manchester and London, Editor Spolight; Political Editor BBC NI; Current Affairs Commissioning editor BBC Radio 4; Editor Political and Parliamentary Programmes, BBC Westminster; former London Editor Belfast Telegraph. Hon Senior Research Fellow, The Constitution Unit, Univ Coll. London