A committee of Canadian Heritage has recommended reversing a cut to the Canadian Musical Diversity fund that was planned for April 2010.

In a report tabled in the House of Commons on Tuesday, the MPs of the standing committee on Canadian heritage said they could find no compelling justification for the cut.

Canadian Heritage announced a restructuring of its funding for the music industry in July, including an increase in funding to some music programs, but also elimination of a $1.35-million program that covers recording and distribution of specialized music.

Musicians have said the cuts will affect artists working in jazz, folk, traditional and contemporary classical music that do not have a large commercial following.

The heritage committee reported it had heard from a wide range of witnesses, including independent musicians and representatives of music associations such as FACTOR, Musication and Le Conseil québécois de la musique. It also heard from the Canadian Council for the Arts, which administers the Musical Diversity Fund, and Canadian Heritage, which has recommended eliminating it.

New Democrat heritage critic Charlie Angus said the committee concluded the cut should be reversed and more money should be invested in diverse recording in Canada.

"The evidence we heard overwhelmingly illustrated how important these grants were, how little consultation there was with those who knew the most about the grants and how a relatively small amount of funding goes a long way with the Canada Council grants," he said in a statement on his website.

He said the committee had studied the benefits and cost of the program, and concluded it was essential to the long-term health of the Canadian music scene.

Heritage Minister James Moore has defended cutting the program. In an interview with CBC News in September, he said the cuts to the diversity fund were made in consultation with the music industry.

"The changes that we made to the Canada Music Fund which we announced back at the end of July in Montreal were made after broad consultation with the music industry across the country and they were very well received," Moore said.