OTTAWA - The Conservative government is set to create a new federal sponsorship program for cultural events, but says it will be nothing like its infamous predecessor marred by corruption and cash-stuffed envelopes.

The Tories say that unlike the scandal-plagued program scrapped by the Liberals in 2003, this one won't have a political mission. There will be no national unity goal and no requirement to fly Canadian flags at cultural events.

"No, no, none of that,'' said Jean-Luc Benoit, a spokesman for Heritage Minister Bev Oda.

"This is not for publicity like the sponsorship program.''

The new program was created with little fanfare in Monday's budget, having received a $30-million annual allotment but no mention in Finance Minister Jim Flaherty's budget speech.

The government said cultural groups have been in desperate need of financial help since Paul Martin eliminated the sponsorship program on his first day as prime minister.

"This is to help fill that void,'' Benoit said.

The Liberal program was born in the wake of the 1995 Quebec referendum and the majority of its $50-million annual funding was steered to that province, where event organizers were forced to display large federal banners in exchange for funding.

But it became infamously corrupt and its very mention now stirs up images that infuriated taxpayers and helped bring down the former Liberal government.

There have been three criminal convictions so far and an ongoing police investigation into a kickback scheme involving federal bureaucrats, ad executives, and Liberal party organizers.

A public inquiry heard tales of cash-stuffed envelopes being transferred across restaurant tables, and weeping witnesses who testified about how they feared for their lives.

The old program had become an object of such disgrace that current government spokespeople refuse to even utter the word, "sponsorship,'' in describing the new one.

The defunct program did not have an official name either and only became known in Ottawa as "sponsorship'' amid reports in the 1990s of a shadowy government fund shovelling money into Quebec.

Cultural groups appeared unconcerned Thursday about what official name the new program would eventually take. They were simply thrilled that the three-and-a-half-year federal funding freeze was finally ending.

"Everyone understands why that (old) program had to go,'' said David Bednar, president of the Canadian Association of Fairs and Exhibitions.

"But it really took away from a lot of outdoor events fundraising that was crucial to their survival. This is just great.''

The first sponsorship program helped the Western Festival in St-Tite, Que., replace its creaky old rodeo stands with shiny new metallic ones that can seat almost twice the crowd. Event organizers say the extra seating capacity came in handy for an event that has turned into a major economic engine for the struggling Mauricie region north of Montreal.

They hope funding from the second sponorship program helps them install wheelchair access ramps and offices that non-profit organizations could use in the off-season.

"It was extremely hard the last couple of years,'' said Danielle St-Amand, head of the St-Tite festival. "This is very, very good news.''

A spokesman for former prime minister Jean Chretien applauded news of the new program.

Sen. Jim Munson declined to comment on the government's flag-free approach but defended the political design of the original sponsorship program.

"A festival brings out the best in a community, and that community is part of a greater community called Canada. The flag is the symbol of all that,'' Munson said.

"We should never be ashamed of showing our flag at festivals or cultural events. It's the symbol of a people, true north, strong and free, and we should never take it for granted.''

The government hopes to work out details quickly about how the program will function, in time for the 2007 outdoor festival season.

The budget did not provide either a name for the program or instructions for groups that want to apply for funding. But it did offer some general guidelines: "Eligible events will include festivals celebrating heritage, arts and culture through dance, music and drama and re-enactments of local historical events.''