The federal government committed $30 million over two years to magazines and community newspapers in its budget yesterday, money that will go towards replacing Canada Post’s annual $15 million contribution to the Publications Assistance Program $60 million mail subsidy, which is being withdrawn in April.

The funding means federal subsidies for Canadian magazines—about $75 million into total, including the PAP and the Canada Magazine Fund (CMF)—will remain status quo heading to April 2010. Over the next year, meanwhile, the industry and Department of Canadian Heritage (DCH) will hammer out details on a new Canada Periodicals Fund (CPF), which will roll the PAP and CMF into a single fund.

"We are delighted with this decision," Mark Jamison, CEO of Magazines Canada, said in a release. "Throughout the process leading to Minister Flaherty's budget, Magazines Canada argued that maintaining this policy envelope was fundamental to ensuring that Canadians have access to Canadian content through magazines, and that Canadian magazines themselves can continue to contribute to Canada's innovation and productivity. In order to do this we need stability in our industry. While this message was lost on Canada Post, Heritage Minister James Moore clearly understood. We appreciate his support."