"Rotorua has waited more than 20 years for this road and [yesterday's] announcement is one of the final stages in the process towards its build.
"The proposed Eastern Arterial Route is about economic development and jobs. It opens up Rotorua's eastern suburbs to future development by businesses, industry and iwi. In particular it enables businesses to come to Rotorua to take advantage of available land and a skilled workforce right on the doorstep of New Zealand's busiest port at Tauranga."
However Positive Rotorua Environmental Society chairman Nireaha Pirika said the announcement was concerning, particularly for Te Arawa hapu including Ngati Hurunga Te Rangi, Ngati Te Roro o Te Rangi and Ngati Uenukukopako, whose land might be taken for the project.
"They're taking land away from the same people, the people who first gifted the land for the township," he said.
There were also concerns about the environmental impact the road would have, he said.
Mr Pirika said the Eastern Arterial Route wasn't the answer to the city's road problems, and an upgrade of Te Ngae Rd should go ahead instead.
Mr McClay said he was committed to working with local iwi and the Rotorua District Council.
Rotorua mayor Steve Chadwick could not be reached for comment.
