Communications Minister Malcolm Turnbull has recruited Peter Lewis, a former chief financial officer at Seven West Media, to conduct a study into the ABC and SBS.



"It is a routine responsibility of the minister to ensure that the ABC and SBS use public resources as efficiently as possible," he said in a statement on Thursday.

Mr Turnbull says it will not review the terms of both network's Charters, or editorial and programming decisions.

The decision follows Prime Minister Tony Abbott's earlier criticism of the ABC in which he accused it of acting against the national interest and lacking "basic affection for the home team".

The study will examine costs for the day-to-day operations of programs, products and services and find savings.



The editorial and programming decisions of the broadcasters will be safeguarded from the study which is being undertaken with their full cooperation.



Mr Lewis will report back to the minister in April.

Watch: Study is not designed to look at the content of news: Turnbull

Interview transcript: Minister Turnbull speaks to Karen Middleton about the study

SBS welcomes announcement of study

"SBS welcomes any opportunity to demonstrate the efficiency and effectiveness of our operations," SBS Managing Director Michael Ebeid said.

But Labor says any cut in funding will be a broken election promise.

In the lead up to the 2013 election, Tony Abbott told SBS there would be no funding cuts to the public broadcasters.



"No cuts to education, no cuts to health, no change to pensions, no change to the GST and no cuts to the ABC or SBS," he said.

Watch: Abbott pledges no funding cuts for ABC, SBS

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Earlier today, acting opposition leader Tanya Plibersek said reports that $223 million could be pulled from the service represent the latest "petty tit-for-tat exchange" the government is having with the ABC.

Cabinet has reportedly discussed ending the public broadcaster's contract to provide Australian content to the region, with some ministers believing its coverage is negative and fails to meet its intended goals.



The network provides television services across the Asia-Pacific region, but also is used as a vehicle for "soft diplomacy" - building goodwill overseas through news and entertainment.



Ms Plibersek said she was very proud the Australia Network was demonstrating the importance of a free and fair press and government scrutiny to the region.



"It's providing a very valuable service and will in years to come."