The CRTC has approved the Canadian Association of Broadcasters’ (CAB) plan for a new temporary Commercial Radio News Fund (CRNF), subject to certain conditions.

The conditional approval follows a public consultation undertaken by the commission late last year.

Similar to the Independent Local News Fund (ILNF) for independent television stations, there was previously no mechanism specifically supporting local radio news production. The CRNF will require certain online audio undertakings to contribute 1.5% of their annual revenues.

To be administered by the CAB, the fund will be accessible to commercial radio stations outside of Montreal, Toronto, Vancouver, Calgary, Edmonton, and Ottawa-Gatineau.

“This funding will help commercial radio stations in smaller communities where radio is sometimes the only source of local news,” the commission stated in a release.

The CRTC is requiring the CRNF to be operational by Aug. 31. Among other amendments, it has asked the CAB to address its capacity to administer and govern the fund; eligibility, allocation, distribution, and reporting requirements; the limit on the amount of funding stations can receive; dispute resolution; and its plan to do outreach, particularly to those stations serving Indigenous and ethnocultural communities.

“The CAB is pleased that the commission has approved almost all elements of our plan to administer the Commercial Radio News Fund,” said CAB President Kevin Desjardins, in a statement provided to Broadcast Dialogue. “We believe strongly that the CRNF will help to support vital local news provided by Canada’s commercial radio sector in the coming years.”

“The CAB looks forward to addressing the outstanding questions raised by the commission, and is confident that we can work constructively with relevant stakeholders to reflect the high level of fairness and transparency with which the association has always administered funds,” he added.