Attempts by the pub trade to avoid a total smoking ban were thrown into chaos earlier this week by a proposal put forward by the Welsh Assembly.
Smoking in pubs and bars in Wales could be banned after members from all political parties passed a motion by 39 votes to 10 calling for the UK government to give it powers to impose a ban on smoking in all public places.
Alun Pugh, the assembly member for Clwyd West, put forward the motion because of concerns over health and, in particular, of children inhaling smoke in public places.
He said: "The whole business of voluntary controls are insufficient and ventilation is not completely effective."
This will come as a huge disappointment to the pub industry which is currently winning the war on ridding smoke from pubs through its Smoking Charter. The charter promotes self-regulation through the use of signage, good ventilation and no-smoking areas.
It was launched with government support on the understanding that compliance would stave off smoking bans.
The latest research reveals that 59 per cent of pubs are compliant, taking the trade over the 50 per cent requirement set by the government.
Northern Ireland is also seriously considering a ban after running a consultation at the end of last year.
The fear is that moves by both countries could force the government to have a re-think over its stance about smoking in pubs.
Trade leaders have spoken out, claiming that a widespread ban would lead to the closure of many small rural pubs. Nick Bish, head of the UK Charter Group, has called on members of the Welsh Assembly to look at the details of the Smoking Charter.
He said: "It's crucial to leave the hospitality industry to self-regulation and we hope to be able to prove that very soon. The Charter is working and the Assembly should be looking at the impact on businesses. There is no evidence that the charter and ventilation isn't working.
"I think this is more to do with Welsh Assembly powers than it is to do with smoking."
Oliver Griffiths of the industry's Atmosphere Improves Results initiative said: "The local circumstances in Wales and Northern Ireland mean that they tend to have poorer, rural pubs, that would go out of business as a result of a ban.
His comments were backed by last year's Publican Market Report survey of publicans. In Wales alone, publicans stand to lose an average of 34 per cent of their trade as a result of smoking bans, according to the statistics.
Gareth John, executive officer, for the Licensed Victuallers (Wales) said the ban would be catastrophic for small rural pubs who are servicing the local community. He said: "Community or rural pubs are those that are currently struggling at moment.They can't afford to lose any business and if they lose even 10 per cent of trade that will be their death."
Charter Group questionnaire
The UK Charter Group is urging pub companies to return their questionnaires, detailing pubs' compliance to the charter, before the deadline of February 7.
Nick Bish said: "The returns that we are getting are most encouraging but we must have everyone's figures to make the real case that self-regulation is working."
The group will be presenting its results to the government in March in order to prove that self-regulation is the best way forward for the industry. Call 020 8579 2080 for details.