I don't really think "fear of being labelled racist" is a valid argument for these people not doing anything.
If they did have a "fear of being labelled racist" then, in my opinion, that indicates a fundamental lack of intelligence and they, therefore, were not suitable nor qualified to do the job in the first place.
I realise this may be the state of affairs in Councils and other authorities.
I suggest you read the independant report it's referred to in the post brexit post you can download the pdf it runs to 159 pages, fear of being labelled a racist was a factor.
http://www.rotherham.gov.uk/downloads/file/1407/independent_inquiry_cse_in_rotherham
From page 92 ~
11.4 Dr Heal, in her 2003 report, stated that 'In Rotherham the local Asian community are
reported to rarely speak about them [the perpetrators].' The subject was taboo and
local people were probably equally frightened of the violent tendencies of the
perpetrators as the young women they were abusing. In her 2006 report she
described how the appeal of organised sexual exploitation for Asian gangs had
changed. In the past, it had been for their personal gratification, whereas now it
offered 'career and financial opportunities to young Asian men who got involved’.
She also noted that Iraqi Kurds and Kosovan men were participating in organised
activities against young women.
11.5 In her 2006 report, she stated that 'it is believed by a number of workers that one of
the difficulties that prevent this issue [CSE] being dealt with effectively is the ethnicity
of the main perpetrators'.
11.6 She also reported in 2006 that young people in Rotherham believed at that time that
the Police dared not act against Asian youths for fear of allegations of racism. This
perception was echoed at the present time by some young people we met during the
Inquiry, but was not supported by specific examples.
11.7 Several people interviewed expressed the general view that ethnic considerations
had influenced the policy response of the Council and the Police, rather than in
individual cases. One example was given by the Risky Business project Manager
(1997- 2012) who reported that she was told not to refer to the ethnic origins of
perpetrators when carrying out training. Other staff in children’s social care said that
when writing reports on CSE cases, they were advised by their managers to be
cautious about referring to the ethnicity of the perpetrators.