"Under the previous Government, transport spending in the Bay of Plenty decreased by 15 per cent."
Twyford said although state highway funding may reduce by $500 million, or 11 per cent, funding for regional and local road improvements and maintenance would increase by $1.2b, or 26 per cent.
He said operational decisions on individual roading projects were made "at arm's length" of the Government by the NZ Transport Agency and he was not able to say how the rebalancing of transport investment would affect decisions around specific roading projects in Tauranga.
Tauranga MP and National Party leader Simon Bridges said he was "worried" the proposed Tauranga Northern Link was "dead in the water".
Bridges said he would continue to petition the Government to make a four-lane highway between Tauranga and Katikati.
He said the problem with the draft government policy statement was that funding would be "sucked" out of the region and into Auckland's light rail system.
The Transport Agency's central North Island director of regional relationships, Parekawhia McLean, said the agency was developing a new draft state highway investment proposal that was based on the guidance of the draft government policy, expected to be released in late April.
It would outline the proposed investment in state highway improvements in the next three years, she said.
"There are a number of parts to the work being investigated for this section of state highway including some interim safety improvements, wider safety work and then the rest of the SH2 Waihi to Tauranga project."
McLean said the Transport Agency could not comment on future plans for specific transport projects until the final government policy statement had been adopted.
A further $101m of safety improvements will be rolled out from Waihi to Omokoroa over the next five years, McLean said.
Sue McArthur, from Greater Tauranga, was pleased with the direction the policy statement was taking.
The Government increased money for public transport, cycleways, pedestrian pathways and safety improvements.
McArthur said the policy aligned with the city's aspirations of becoming an "internationally competitive city".
"We want to see a booming economy and our community doing well. Better transport options will benefit the wealth of Tauranga where it really is a great place to live, work and play."
SH2 interim safety improvements:
New road marking and lane markers have been installed at these intersections: Omokoroa and Youngson Rds, Plummers Point and Whakamarama Rds, and Te Puna Quarry and Snodgrass Rds.
The first section of improvements, Waihi to Trig Rd, was expected to begin construction in mid-2018. Waihi to Trig Rd upgrades would include upgrading five intersections (with SH2; Heath, Crean, Baxter, Ford and Trig Rds); road and shoulder widening, wide centreline, and installing roadside safety barriers and a right turn bay for Waimata School.
The remaining nine sections include; Trig Rd to Mathers Rd, Mathers Rd to Athenree Gorge, Athenree Rd to Tanners Point Rd, Tanners Point Rd to Kauri Point Rd, Kauri Point Rd to Lindemann Rd, Wharawhara Rd to Sharp Rd, Sharp Rd to Sargent Drive, Wainui South Rd to Esdaile Rd and Esdaile Rd to Omokoroa Rd.