"While I recognise that this decision may be disappointing for some, I believe that it is the right one."
Despite multiple sources calling the event a Christmas party, Mr Cameron told the ODT in an emailed statement it did not have a Christmas function "as such" but instead had staff recognition awards functions.
Staff would still be recognised but at smaller events.
"The decision was made after consulting a number of people and we decided to hold smaller functions and will celebrate our successes together in this way.
"The last few weeks has been particularly busy with a lot of pressure on our people and their continued professionalism and dedication will be recognised within their operational groups over a breakfast or morning tea," he said.