From dictionary.com, by no means the buck-stopper in lexicology but certainly a reliable source:
racism
1) The belief that race accounts for differences in human character or ability and that a particular race is superior to others.
2) Discrimination or prejudice based on race.
Interesting that 2) makes no discrimination between "positive" and "negative" discrimination. So, when you are asked to fill in those forms saying "what race are you?", the fact that they are taking note that you are african, asian, caucasian, hispanic or whatever, means that they are inviting you to discriminate yourself. So this could be racism by proxy, I am convinced it's not right anyway.
As to the "racism problem" in this country, yes there are and always will be a number of racist people. It is a problem with a small p, not a capital P. We have murderers too, would you describe the country as having a "homocide problem"? A lot of "racism" could probably be put down to old people using non-PC terms. How many times have you heard an old lady refer to someone of colour as "that dark fella down the road"? Doesn't mean she thinks any less of them.
As a matter of interest, does anyone know if the CRE has ever supported a case where a white person has been discriminated against?