Shane Jones says the iwi opposed to a section of gravelled Hawke's Bay state highway being sealed is "hillbilly thinking".
Roughly 10km of road on State Highway 38 was due to be sealed with a $10 million-plus Provincial Growth Fund grant to be announced on Monday.
An event was scheduled to announce funding from the fund but was cancelled at the last minute due to Tuhoe opposition.
Tūhoe Te Uru Taumatua chairman Tāmati Kruger told Hawke's Bay Today over the weekend that sealing the road would contribute to damage of the environment.
He said his iwi was already struggling to handle the enviromental concerns that stemmed from a rise in tourism in the Waikaremoana area, which would be more pronounced with easier access to the lake, one of New Zealand's Great Walks.