This paper is from the Breakfast Briefing, Thursday 5 December 2002 at the Masonic Centre in Sydney. Topics include: the role and perception of drugs in society, an overview of the costs of drugs and alcohol in Australia, the costs of drugs misuse and abuse, a framework for managing drugs and alcohol as an impairment issue within a risk management framework, some current problems with drug and alcohol testing and management in Australia, issues associated with drug and alcohol testing, and draws conclusions.