The ABC has warned that the quality of its programs and services could suffer unless the federal government gives it more money.

In its annual report, the national broadcaster repeated calls for the government to increase its funding for the 2006-2009 triennium.

The report says, while it had been able to trim costs in the past by becoming more efficient and reducing its activities, there is a limit to how much more can be done. Especially with the transition to digital technology making more demands on its budget over the next five to ten years.

The Annaul Report shows that the broadcaster lifted its net profit from revenue activities to $33.1 million for the 2004/05 financial year from $21.9 million the previous year.

The government is currently carrying out a review of the adequacy of the ABC’s funding and how efficiently the broadcaster uses its cash.