Mr Twyford was speaking at the 2018 Road Transport Forum Conference, held at Dunedin's Forsyth Barr Stadium, yesterday.
He outlined the Government's plans to reevaluate the value of big-ticket highway projects and shift investment towards improving the country's regional and local roads, among other changes.
But, after discussing the Government's interest in greater use of rail and coastal shipping for freight, he was challenged from the audience by a Northland transport operator.
The man, who did not give his name, told Mr Twyford the region needed more investment in its roads - both local, regional and State Highway 1 - to cater for rising tourist numbers in the north.
Without it, "all I can see is us having more tourists dying on our roads", he said.
But the transport industry was already paying its "fair share", and he did not want to see higher fuel taxes invested in rail instead.
"I'm pretty staunch about this, to the point that if you want a war - we'll bring you one."
Mr Twyford hit back, saying the Government's shifting focus was "long overdue".
The previous National-led Government had decided to "p... away" 40% of the country's entire transport budget on a "handful" of new state highway projects, which together catered for just 4% of vehicle journeys, he said.
"That is economic madness and we will not do it," he said.
The focus on big-ticket projects had meant "the rest of the transport system went to hell in a handbasket", he said.
"That's why so many people are dying on neglected regional and local roads, and we are going to address that."
The Coalition Government's focus was on a transport system which moved freight efficiently, improved safety, reduced carbon emissions and delivered "value for money".
Extra investment would come at a cost, through higher fuel taxes, but change was needed, he said.
