The Chief of Navy says the former commander of the frigate Te Mana will never be allowed to be in charge of a warship again.
John Butcher been found guilty of charges relating to behaviour ashore at an official function in Vanuatu.
Commander Butcher pleaded guilty at a summary trial to charges of drunkenness, bringing the Navy into discredit, and using inappropriate language while attending an official function in July this year.
He was fined $2000 and officially reprimanded after pleading guilty to the charges under the Armed Forces Discipline Act. He has been directed to seek alcohol counselling and apologise in writing for his actions.
Rear Admiral Tony Parr told Radio New Zealand's Checkpoint programme on Thursday that Commander Butcher's behaviour caused the ambassador and the Navy embarrassment, and he will never command a frigate again.
"He's lost my confidence in his ability to be consistent in his behaviour in all things. That extends to the technical competence and practical competence on the water in leadership positions, but also in behavioural things."
Rear Admiral Parr says the sentence sends a strong message to all ranks that alcohol abuse will not be tolerated.
Commander Butcher will be posted to Defence Force headquarters and work in an office job. He will retain his rank.