Shadow minister for Trade, Transport and Local Government Warren Truss and Paterson MP Bob Baldwin announced the funding at Raymond Terrace on Monday.

A survey by Newspoll found petrol prices and road policies are important issues for 90 per cent of Paterson voters.

Under a Coalition Government $20 million would be spent to build passing lanes on the Bucketts Way, an additional $20 million to upgrade Main Road 301 between Raymond Terrace and Dungog, and $6 million to start construction on a Nelson Bay to Fingal Bay bypass.

Mr Baldwin said if elected the Coalition Government would make the money available almost immediately. "The only hold up could be the Fingal to Nelson Bay bypass because the council (Port Stephens) is still negotiating route access with the Worimi people." Mr Baldwin in 2007 voiced support for the project and said it was something the area needed. "The development of the Fingal bypass will be a key piece of infrastructure," Mr Baldwin said.

"The community has said to me they are sick and tired of traffic jams and congestion at Nelson Bay."