Prime Minister Tony Abbott has continued his criticism of the ABC, saying the national broadcaster should have better corroborated its reports containing claims that the Navy mistreated asylum seekers.

Speaking on ABC's 7.30 program, Mr Abbott denied overreaching with his claims the ABC has been unpatriotic in its news coverage but confirmed the Government is evaluating whether the Australia Network should be abolished altogether.

Mr Abbott said his criticism stemmed from two separate reports, which he said were not "fair, balanced" or "accurate".

He homed in on the ABC's decision to jointly report with The Guardian details from the Edward Snowden leaks, which revealed Australian spy agencies bugged the phone of Indonesia's president in 2009.

"The ABC in this case didn't do any investigation of its own ... it wasn't just reporting them, it was promoting them," Mr Abbott said.

"I didn't think that was a particularly wise act in accordance with the ABC's charter," he added.

Mr Abbott again took issue with the ABC's decision to air allegations made by asylum seekers turned back to Indonesia, that they were forced to hold onto hot engine pipes on their boat.

"If a very serious allegation was being made that Australian Navy personnel effectively tortured people, well you'd think any responsible news outlet, let alone the voice of Australia – the ABC – would have sought corroboration before broadcasting them," he said.

Abbott considering value of Australia Network ahead of budget

The day after the Prime Minister complained that the ABC's coverage lacked "affection for the home team", speculation emerged the Government was considering abolishing the ABC-administered Australia Network in the May budget.

The Australia Network is broadcast overseas and funded by the Government as a form of soft power diplomacy.

Labor awarded the $223 million contract in perpetuity to the ABC in questionable circumstances and the process that was later slammed by the Auditor-General.

Mr Abbott said the Coalition had long held concerns about the way the Australia Network's tender process was handled by the former Labor government.

Asked whether the Coalition saw value in the broadcasting service as a form of diplomacy, Mr Abbott said that was something currently being evaluated.

"It's obviously important to put our best foot forward," the Prime Minister said.

Sorry, this video has expired ABC managing director Mark Scott defends editorial independence and integrity ( ABC Radio National's Mark Colvin )

"Whether that's the best way to do it, whether there aren't other good ways of doing it, that's something that we'll consider in the weeks and months ahead."

The ABC's managing director, Mark Scott, says cutting the Australia Network would constitute a significant cut to the ABC's news resources and has warned it could lead to cutbacks in foreign bureaus.

"It would take some millions out of our budget, particularly around news," he said.

"It would affect the extent to which we can resource some of our foreign bureaus, so it would not be an insignificant cut."