The Alcohol and Other Drugs Council of Australia (ADCA) has placed itself in voluntary administration, after its funding was removed in a Federal Government attempt to save $1.5 million.

The peak national body representing the alcohol and drug treatment sector closed immediately after being told its core funding has been halted. The money was torn away as part of a ‘budget deficit reduction strategy’.

Agreements with the previous Federal Government had secured increased funding for the ADCA. The decision by the current government to hold back the money will leave it with an extra $1.5 million a year.

ADCA Chief executive David Templeman said the group has a 50-year-long tradition of providing clear, scientific and frank policy advice to governments.

“Sometimes we do have to be very forceful; 75 per cent of our community know that we have a fundamental problem in Australia with alcohol-related harm. All governments need to listen to that,” he said.

Chairman of the ADCA board, Dr Mal Washer, a former Liberal MP, said he was caught by surprise.

“I can understand when a new government comes in and funding's tight. And need to review what agencies they fund are doing. But you would have hoped that we would have got funding until that review was completed,” Dr Washer said.

It is unclear whether the decision was influenced by ADCA’s progressive positions on harm minimisation, decriminalisation and alcohol pricing.

“Certainly the ADCA has been in existence for nearly 50 years, providing that contestable, frank and fearless advice as part of the debate,” Mr Templeman said.

“I was talking this morning to a specialist obstetrician colleague of mine who said; 'Heavens, a $1.5 million cost [for] ADCA each year'?”

“And yet in his estimation, to manage and care for a foetal alcohol spectrum baby would cost probably between $10-15 million in their lifetime.”

The ADCA has some 350  member groups which provide various sorts of drug and alcohol services and support. These groups will no longer have a unified federal voice, and may face the chopping block as well.

The Director of the smaller Aboriginal Drug and Alcohol Council, Scott Wilson says; “again we're out in the wilderness, floundering.”

“There is no other peak body by the way for Indigenous drug and alcohol groups in Australia.

“When I heard about ADCA yesterday, I have to be honest, I was worried about the organisation I work for,” Mr Wilson said.

A statement issued by Assistant Health Minister, Senator Fiona Nash indicated the possibility that some debts would be covered, but gave no word on the ADCA’s long-term future.