Ok, this is actuallly made me really angry! I am still thinking about it !

Not only does it foster an attitude that smoking is okay, it also is reinforcing a social aspect of smoking, hardwiring these kids to relate break times, friends and food with smoking. This will make the habit even harder to quit, its the kind of situation the tobacco companys could only dream of having!

Enabling smoking is just as bad an encouraging smoking. Just because at 16 you can smoke, doesn't mean that they should be enabling these students to do so.
If students are smoking and going out of class to do it, then the solution should be to make these kids complete Quit programs, not legislate a way for them to smoke within the bounds of the school! When I was in highschool the deputy principle would have you in afternoon detention completing a Quit program if you were caught smoking.

I would be calling Today Tonight or 7pm Project and dobbing.... i'm sure a sour media reaction would nip the practice in the butt pretty quickly!