OTTAWA - Canada's cash-strapped passport agency is asking for more money from Ottawa.

This, in the face of a deteriorating financial position and international criticism over delayed security improvements.

In an internal report obtained by The Canadian Press, money-losing Passport Canada urges Ottawa to consider a new funding model that would allow it to bankroll projects including the long-promised e-Passport, containing a data-packed computer chip.

The cash crunch raises questions about whether the agency has enough resources to ensure the Canadian passport won't be routinely abused by terrorists and other criminals.

Passport Canada argues more money is needed in an era when the passport is no longer merely a travel pass, but a security and I-D that helps support anti-terrorism efforts post-9-11.

Demand for passports has risen, partly due to new border rules imposed by the U-S, but costs have also climbed, which the report says is stressing the agency's capacity.