Launceston Chamber of Commerce has welcomed bipartisan support for the proposed eastern bypass, saying it it has been a long-time advocate for the project.
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Liberal Bass candidate Bridget Archer pledged $1.5 million to assess the feasibility of an eastern bypass, along with $40 million to upgrade the Sideling.
Chamber executive officer Neil Grose said a ring road would allow freight traffic to bypass the city.
"The Launceston Chamber of Commerce has been an advocate for an eastern ring road for nearly four decades," Mr Grose said.
"A significant proportion of heavy transport on Bathurst and Wellington Streets in Launceston is transiting through the city and [a bypass] would potentially improve traffic congestion in the city as well as improving amenity," he said.
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City of Launceston mayor Albert van Zetten also welcomed the bypass feasibility study commitment.
"The bypass would involve an eastern transport corridor that would connect the eastern growth and industrial land of the city with the West Tamar, East Tamar and Midland Highway corridors to better distribute traffic around and across the city," Cr van Zetten said.
"This would take pressure of unnecessary vehicle trips (especially freight) through inner Launceston, and remove heavy vehicles off Wellington and Bathurst streets."
A long-term traffic plan like a bypass would allow residents more transport options and reduce heavy vehicle traffic in St Leonards, he said.
"The council is working in collaboration with the state government and its neighbouring councils to develop a whole-of-region transport vision for the North," Cr van Zetten said.
Bass Labor MHR Ross Hart said Labor would fund Sideling upgrades if elected, addressing the funding disparity by saying "we were asked to commit $25 million".