Mr Milne was responding to Local Government New Zealand passing a remit this week, asking the Government to implement legislation to prohibit smoking outside bars, cafes and restaurants.
"I have never smoked and I don't particularly like smoking, but it is a basic freedom of choice for the individual."
Mr Milne said some of his regulars smoked, although he did not think a ban would have a huge impact on business.
Tautea Tocker of the Cornerstone Pub said he had never received a complaint from a non-smoker. Although smoking caused health problems, he did not want to cut his own throat financially by discouraging smokers from coming to Cornerstone. "It is a case of where to draw the line."
Mr Tocker said a lot of smokers were aware of people's feelings and shifted tables or went across the road to smoke.
Graeme Bastin of Latitude 37 in Mount Maunganui opposed the ban because it would prevent people going outside for a smoke.
"We don't have a lot of smokers and those who do are respectful. They would not sit next to someone that was eating."
Mr Bastin said it was a summer problem. In winter, people ate inside and only went outside for a smoke. He did not think a ban would impact on takings.
However, Tauranga Mayor Stuart Crosby said there had been strong informal consensus among the council to support the remit.
He said it would be simpler and less confusing for smokers if the Government passed a law for the whole country. The council would have to canvass the community for its views if the Government left it to individual councils to pass bylaws.
Mr Crosby said there was less tolerance to smoking in outdoor dining areas and a full ban would be part of the journey towards New Zealand being smokefree by 2025.
Councillor Steve Morris also hoped that the Government would deal with it nationally. Although he did not like sitting in an environment with smoking going on, he said he did not want to become a killjoy.
The council would have to take account of the probability that the Government would make councils responsible for enforcing a law. "I suspect we are a little bit light with monitoring anyway."
Councillor Leanne Brown said it would be a good incremental step to New Zealand becoming smokefree. The former Mount Mainstreet manager said some smokers were considerate, while others made the most of sitting where they could.
Councillor John Robson said that, although smoking was legal, the bottom line was that it was not a healthy habit and "would ultimately go the way of bear baiting".