A NEW national news service is expected to be established early in the new year to supply national and international news to the country's 21 local commercial radio stations.

The new service will probably be called ILR News, or Independent Local Radio News. It will be established by the two Dublin stations, 98 FM and FM 104, which now supply news to most of the stations around the country.

The service will be operated by a new company, which has yet to be established. The head of news will be Mr Andrew Hanlon, who is head of news at 98 FM. It is believed he will have a stake of 10 per cent in the company, with the two Dublin stations owning 12 per cent each. The balance will be owned by the stations that use the service.

The new service will not be connected to either of the Dublin stations, though both will probably take the service. It will operate from new premises and Mr Hanlon will resign his position with 98 FM. Funding will be from advertising.

National and international news for the local stations has been highly unsatisfactory since the collapse of Century Radio five years ago.

The new service will be a blow to Radio Ireland, the national service due to begin broadcasting in March. It was to offer a national service to local stations that would help defray the cost of its own news service.

It is expected that details of the new service will be announced next month.