The council passed a motion from Alderman Ivan Dean at its February 15 meeting, banning smoking in on- street dining areas around the city from January next year.

In a report in the meeting agenda, officers said surveys had been sent to 50 businesses on the proposed ban, yet only one response had been returned to the council.

The Examiner yesterday obtained a copy of an internal memo sent to aldermen 10 days after the meeting, in which acting general manager Rod Sweetnam admitted no surveys had been sent to businesses.

"I have looked into the matter and it was actually a covering letter and not a survey," Mr Sweetnam said.

"The statement about receiving one response I now believe was a verbal response from one trader to a council officer.

"As a consequence the results as presented can not be substantiated ...

"As you and the other alderman may have relied on the information presented in the report in coming to a position on the issue, I apologise this has occurred."

Asked about the memo yesterday, Mr Sweetnam said new surveys would be sent to all licensed food premise operators this week.

Once the results were collated, a report would go back to the council for consideration.

AHA chief executive Steve Old said his body wanted the council to rescind the motion immediately because it was "unsubstantiated and wrong".

"We are quite happy for them to go through a survey process with the industry because they should understand the impacts this will have before they make decisions like this," he said.

"But in the meantime this decision needs to be rescinded as soon as possible."

Launceston Liquor Accord spokesman Mick Aquarola said he had been stunned by the document.

"I couldn't believe they would do that," Mr Aquarola said.

"They have presented this false information to the aldermen and they have just gone along with it.

"It puts a doubt in the community - what sort of council have we got here in Launceston?"

Some aldermen at the meeting were surprised at the lack of responses.