An accused white supremacist fighting for custody of his children in a Winnipeg courtroom says he's a good parent.

The Manitoba man told a hearing on Monday that he and his estranged wife did use a picture of their kids for a poster bemoaning the future of white children, but he says he never put the poster up around the city, because he didn't want the children's picture to be splashed around Winnipeg.

Manitoba Child and Family Services (CFS) is fighting for permanent custody of the girl and her younger brother. The province alleges the children were exposed to racism and alcohol abuse in the home.

The children were seized after the girl was sent to school with racist markings on her body.

The man testified that he's not a white supremacist but he did describe himself as a skinhead. He also told the court that he is against people of different races having children together.

The man also admitted he used derogatory words to describe black people, taught the girl to believe in white pride, and told the girl that non-whites should go back to their own countries.

He said he has a right to his beliefs, but since the children were taken away by CFS he has ceased all association with white supremacists.

The custody case has garnered international attention and sparked debate over how far parents can go to instill beliefs in their children — and how far the government should go to protect children from those beliefs.

The children were taken from their home in March 2008 when the girl, now eight years old, went to school with a swastika drawn on her arm. Her teacher scrubbed it off in the afternoon, but the girl showed up again the next day with another one, along with other white supremacist symbols drawn on her body.

Family services caseworkers were alerted and went to the family's apartment, where they found neo-Nazi symbols and flags, and took custody of the couple's two-year-old son. CFS officials picked up the daughter at her school.

The parents — the girl's biological mother and stepfather — are each seeking custody of the children. The stepfather — who is the boy's biological dad — has also launched a constitutional complaint, saying social workers violated his freedom of expression, religion and association by apprehending the children.

The couple, now separated, are also accused of failing to provide adequate care for their children. Lawyers and social workers have told court there were problems related to drug and alcohol abuse, domestic violence, criminal behaviour and mental health problems.

The mother, who no longer lives in Manitoba, testified last week and has since returned to her home. As a result, the lawyer for her ex-husband didn't have the opportunity to cross-examine her. During the woman's testimony last Friday, she called her ex-husband an unfit parent.

She is currently out on bail after being arrested while in the city last week. She was charged with a number of fraud-related crimes, accused of stealing her own mother's credit card last fall and racking up charges of more than $20,000.

None of the people testifying at the hearing can be identified in order to protect the identities of the children.

With files from The Canadian Press