Ms Lee, a list MP, made the comment at a candidates meeting for the June 13 by-election.
There was heated debate at the meeting on the New Zealand Transport Agency's $1.4 billion motorway proposal, announced by the Government on Tuesday, which will use a combination of above ground and underground sections to make up the 4.5km Auckland motorway extension between Waterview and Mt Roskill.
Ms Lee told the meeting people drove to the electorate from South Auckland, and that the new motorway extension could divert some of that traffic and criminals from Mt Albert, Radio New Zealand reported.
Transport Minister Steven Joyce, asked this morning whether he agreed with Ms Lee, said it sounded like there was a "fair bit of excitement" at the meeting.
"Probably quite a few candidates, by the sound of things, might have said some things in the heat of the meeting."
The fresh controversy comes as Ms Lee fends off accusations she misused taxpayer funding when she continued working for her broadcasting company, Asia Vision Ltd, after announcing she would stand as a list candidate in last year's election.
Labour says the company received $1.2 million from New Zealand on Air last year, including money used in October for an election special.
Ms Lee said she had not presented or taken part in production of the programme, though Labour said staff members had said they felt pressured by her.
Labour leader Phil Goff said Ms Lee had used staff to make a political promotion video that was not declared in election expenses.
Ms Lee said the staff members donated their own time, but Mr Goff argued this was not the case.
"That was certainly not the view of the staff members that worked for her there. Their view quite clearly was equipment and staffing paid for through NZ on Air was misused to produce the National Party election video."
NZ on Air chief executive Jane Wrightson said Ms Lee's candidacy was known to NZ on Air and the conflict of interest had been managed.
"We are looking into the allegations, but we haven't decided on whether to hold an audit," Ms Wrightson said.
Ms Lee had gone off screen and an independent producer had been brought in.
"She had no editorial control."
