A Victorian Labor MP has faced accusations of being out of touch after suggesting some residents would rather tolerate potholes than have their streets resurfaced due to concerns about increased traffic.

Upper House MP Sonja Terpstra made the comments during a parliamentary debate on Victoria's road network, distinguishing between roads managed by local councils and those overseen by the state government. She cited a Banyule Council road in Melbourne's northeast as an example, describing it as one of the worst she had recently encountered.

"But funnily enough in regard to that road, it is the residents who do not want it resealed, because they do not like traffic going down it, so they are quite happy to have it full of potholes, might I add," Terpstra stated. She added that Banyule Council had consulted with local residents, who had rejected resurfacing proposals.

Terpstra then criticized the Coalition's election pledge to address Victoria's pothole crisis with a $5 billion road-repair fund, contrasting it with Labor's investment of $1 billion in the most recent budget. "So not everyone is on board with your pothole thing; they actually like it full of potholes," she told Coalition MPs.

The opposition responded swiftly, with Shadow Minister for Local Government Bev McArthur accusing Labor of making excuses for the deteriorating state of Victoria's roads.

"After more than a decade in office, Labor is blaming everyone except itself for the shocking state of Victoria's roads," McArthur said in a statement. "Victorians don't want excuses. They want roads that are safe to drive on, not MPs claiming people prefer potholes."

McArthur also suggested that cost overruns on major infrastructure projects had led to neglect and underfunding of local roads. "While roads across Victoria continue to fall apart, Labor has allowed billions of dollars to be lost to corruption on Big Build projects. That is money that could have been spent repairing roads, fixing potholes and investing in the infrastructure communities rely on," she stated.

Nationals leader and Shadow Minister for Roads and Road Safety Danny O'Brien echoed these sentiments, calling Terpstra's remarks detached from reality and reflecting Labor's disconnect from public concerns.

"For a member of the government to suggest Victorians do not want roads resurfaced shows how out of touch Labor is when it comes to what Victorians are crying out for," O'Brien said. "It is indisputable that Victorian roads are appalling and in dire need of repair."