More than half of all pubs and bars are now taking positive action to cater for non-smokers, a survey of almost 3,000 outlets commissioned jointly by the industry and the Department of Health has revealed.

The results of the survey have been hailed by the Charter Group, an alliance of more than a dozen leisure trade bodies, as a sign that self-regulation over smoking restrictions can work.

However, industry insiders are quietly fuming at a distinctly lukewarm reaction to the survey's findings from the Department of Health, which issued a statement saying that "more must be done and rapidly" over the issue of "second hand smoke" in pubs and bars.

The survey, conducted by CGA, found that 63% of pubs in England and Wales now display Charter signs indicating their policy on smoking, which can range from no smoking at all in public areas to smoking allowed throughout, against an initial target of 50% of pubs with signs.

Even better, 51% of pubs had "good practice" policies to restrict smoking and/or to have ventilation to the Charter standard, against a target of 35%.

While only three pubs out of the 2,943 surveyed were completely non-smoking, a tiny 0.1%, a total of 42% only allowed smoking in a separate designated area, with a quarter of those also having ventilation that met the Charter standard, while 9% allowed smoking throughout but had ventilation that met the Charter standard. In all almost one in five pubs had installed ventilation to the Charter standard.

However, only 42% of pubs could produce their written policy on smoking when asked, even though they had signs outside saying what their policy was, which was below the Charter Group/Department of Health target of 50% of pubs with a written policy.

Nick Bish, chief executive of the Association of Licensed Multiple Retailers and chairman of the Charter Group, said the level of 51% of pubs meeting "good practice" on smoking policies was "great news and a tribute to the hard work invested by operators at every level. We look forward to working closely with the Department to make even further progress."

However, the Department of Health's own statement on the survey's findings concentrated on the fact that only 42% of pubs could produce their formal written policy on smoking, which fell short of the 50% target in the Public Places Charter, the voluntary code agreed by the government and the hospitality industry trade bodies in the Charter Group.

It also pointed out that half of pubs that were Charter compliant still allowed smoking throughout, while only a handful of premises were entirely smoke-free. The DoH said: "Non-smokers make up the majority of the population; and the majority of non-smokers mind if someone smokes near them. Expansion of smoke-free places in pubs, bars and restaurants would meet public demand.

"More must be done and rapidly. The Government will be considering the issue of secondhand smoke in light of these findings and other recent developments."

Nick Bish said he was "disappointed" that the Department of Health had not been more fulsome in its praise for what the industry had achieved in the light of the White Paper on smoking and health and the Charter programme.

Referring to a recent statement by the Secretary of State for Health, Alan Milburn, that he was in favour of self-regulation by the industry on smoking, Bish said he welcomed that news, and looked forward to working with the DoH on that basis.

Industry insiders are worried, however, that today's statement by the DoH could risk the "disengagement" of companies from the drive to achieve Charter-compliant practice on smoking across the nation's pubs and bars. One said" We need to stay on the case for good commercial reasons, not just for health ones."