http://www.abc.net.au/news/2012-09-06/gillard-pulls-out-of-christian-lobby-speec...Mr Wallace made the remarks in Tasmania yesterday during a debate with Greens leader Christine Milne on the merits of same-sex marriage.
"I think we're going to owe smokers a big apology when the homosexual community's own statistics for its health - which it presents when it wants more money for health - are that it has higher rates of drug-taking, of suicide, it has the life of a male reduced by up to 20 years," he told the audience.
"The life of smokers is reduced by something like seven to 10 years and yet we tell all our kids at school they shouldn't smoke."
This morning, he accused "gay activists" of misrepresenting his comments.
"I was not comparing homosexuality with smoking at all," Mr Wallace said in a statement.
"What I was saying is that on one hand we are vocal on our discouragement of people to smoke and on the other we are suppressing public dialogue about the health risks associated with homosexuality.
"Instead of more free speech-suppressing vitriol and demonisation from the gay activists, there needs to be an open and honest debate before Parliament changes the definition of marriage."
Ms Gillard was listed as the key note speaker at the ACL conference, but has been facing pressure to pull out of the event.
"I believe yesterday's comments by Jim Wallace were offensive," she said in a statement today.
"To compare the health effects of smoking cigarettes with the many struggles gay and lesbian Australians endure in contemporary society is heartless and wrong.
"Although everyone is entitled to their own view, these statements reiterated again today on behalf of ACL are totally unacceptable."
Demonisation
The Greens have applauded the Prime Minister's decision, saying she should never have agreed to speak at the ACL conference.
"The Prime Minister should not be going anywhere near the Australian Christian Lobby because they're a private company, they have no affiliation churches and their whole focus is to attack the gay community," Senator Milne told ABC radio.
But Mr Wallace said he was disappointed by Ms Gillard's decision to pull out of the event, describing it as a blow to free speech.
"This is a victory for the demonisation tactics of gay activism and its constant misrepresentation and spin of anything that is said by people who support marriage as between a man and a woman," he told ABC radio.
Mr Wallace said he could not understand why his comments offended homosexuals or the Prime Minister.
There are currently two bills before the House of Representatives aimed at legalising same-sex marriage - one from Greens deputy leader Adam Bandt, the other from Labor backbencher Stephen Jones.
Labor MPs have been given a conscience vote on the legislation, but Coalition MPs are expected to follow the party's position on the issue, which does not allow for any change to marriage laws.
A final vote on the legislation is not expected until later this year, although at this stage it appears the legislation will struggle to get the support it needs to pass the house.
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