Infrastructure Minister Michael Ferguson has moved to allay fears about traffic problems in Launceston by upper house member Rosemary Armitage.
The independent member for Launceston said the question of an Eastern by-pass, ring road or link road had been "going around in circles for years".
Ms Armitage also is worried about traffic congestion with the UTAS relocation.
"I would urge the decision-makers to seriously consider the impacts this will have on traffic issues, and the effects that traffic issues will have on the new campus in the heart of the city," she said.
Mr Ferguson said the Federal Government had allocated $1.5 million to consider options for an Eastern by-pass and planning was well underway for the UTAS relocation and reducing congestion.
"We are progressing that with the Federal government to make sure we get that right," he said.
"The state government is working very closely through our Department of State Growth with our local, regional councils and we are actually developing a combined vision for how we can ensure Launceston and greater Launceston has transport infrastructure for all road users in the long-term.
"We assure the community we will have a lot more to say in the near future so they can see the work that has been going on.
"We are about reducing congestion, ensuring that we build roads that are fit for purpose for the next 50 years."
Ms Armitage said she hoped a bypass would be a major focus of traffic planning.
She also urged 'decision-makers" to plan for the move by UTAS.
"The precinct being developed at Inveresk leads directly into arterial and freight roads. In the current state of these roads. the ease, amenity and safety of those working, studying and living at the campus will be significantly affected." she said.
"If the state government truly views the University relocation as a fundamentally transformative project, then I cannot see why decision-makers won't consider or prioritise university traffic amenity as a factor informing their priorities to determine a traffic vision and, as a consequence, the much-needed bypass.
"It is unquestionable that living near and experiencing the effects of heavy, high-emissions vehicles is unpleasant."
"If the traffic issues, particularly as they relate to heavy, high-emissions vehicles, remain a non-priority for the government, urban sprawl will commensurately worsen and the opportunities once present for city living and development will dissipate.
"If we are to attract a younger demographic, we must leverage the world-class infrastructure that already exists here; not take it for granted and not allow it to worsen."