ABC managing director Mark Scott has denied allegations that ABC's 24-hour news channel will be laying off employees in its rural and regional coverage in order to save up for the expenses in its new operation.

Mr Scott told Nationals senator Barnaby Joyce that "no decision has been taken" to remove staff in Lismore or Mackay but said that no downgrading of rural or regional coverage will occur. More over, he guaranteed that no staff will be moved from these areas.

According to Mr Scott, the money used for the new channel was funded by savings from production costs in ABC operations but would need 17 additional staff. He said that the direct cost of setting it up would not exceed $20 million and that existing ABC resources were not used.

During a Senate estimates hearing, Mr Scott defended ABC, saying that the 24-hour news channel is filling a hole in the market that could lead to additional investments of ABC in journalists and overseas bureaus.

He even informed that ABC 3, ABC's new children's channel, ranked first for five 12-year-olds with 12.7 per cent of the market.

Mr Scott offended the senators over a Twitter tagline budgies telecast while Tony Abbott was giving his budget-in-reply speech.

"Are you suggesting that it is appropriate for the ABC to refer to statements by the Leader of the Opposition as Budgies?" Liberal senator Mathias Cormann asked him.

"I would have thought there is a serious question mark there."

Mr Scott reasoned that Twitter users, not the ABC, decide what to call groups of Tweets on a subject.

Opposition Senate leader Eric Abetz compared interviews by Tony Jones with Wayne Swan and opposition Treasury spokesman Joe Hockey.

According to him, Mr Hockey was interrupted 20 times, with Jones contributing 42 per cent of the 3482 words spoken. Mr Swan got less interruptions, with Jones contributing 29 per cent of the words.

Mr Scott said "they are only two interviews", stating that a good reporter interrupts people who are deviating from or not answering the question.