Responding to a petition tabled in parliament earlier this month calling for Mr Bath to resign over the Scott Neylon letters saga, Mr Hoenig said as minister he had no power to take disciplinary action against council employees, including general managers.

"Ultimately, council is accountable to its residents and ratepayers for the decisions it makes, including those relating to the employment of its general manager," Mr Hoenig said.

"The community will have an opportunity to pass judgement on council's decisions and performance at its election in September 2024."

More than 600 people signed the paper petition in less than two weeks, calling for Mr Bath to step down from his $513,000-a-year job.

The petition was organised by vocal council critics Newcastle Maritime Museum Society president Bob Cook, Newcastle East Residents Group spokeswoman Christine Everingham and former Hamilton Business Chamber president Nathan Errington, along with council's former interim chief executive Frank Cordingley.

The petition asked the NSW Parliament's lower house, the Legislative Assembly, to request Mr Bath's resignation.

Mr Bath has been under fire since July last year when a Newcastle Herald investigation revealed his link to a misleading letter to the editor writing campaign under the name of his best friend, Scott Neylon, who has lived in Japan for decades.

Mr Neylon is married to a Japanese woman, and according to a list of his teaching experience from his company's website, has been teaching in Japan since at least 1998.

Mr Bath has repeatedly denied any involvement in the letters.

Mr Hoenig said he understood the allegations were referred to an independent contractor to be investigated under the Procedures for the Administration of the Model Code of Conduct for Local Councils in NSW.

"The outcome of the conduct reviewer's investigation was reported to council's 12 December 2023 meeting and found that there was insufficient evidence to support the allegations against Mr Bath," he said.

The petition was presented to parliament by Wallsend MP Sonia Hornery, who has been a target of the nasty letters.

Ms Hornery told parliament there was "deep community frustration" about Mr Bath.

She spoke about Mr Bath's links to Mr Neylon, describing "extraordinary coincidences" in his letters that targeted critics of Mr Bath and his employer.

"Members of our community cannot sit by and suffer the maladministration of a petty man," Ms Hornery said

"They do not want to be victims of any more damage."

At the time, Mr Bath hit back saying less than a third of one percent of the population of Newcastle had signed the petition, and that Ms Hornery's "obsession with council issues is nothing but a ploy to distract from her inability to protect services or deliver for Wallsend".

The petition said despite questions regarding Mr Bath's role in the submission of the letters to the editor, he has "remained in his $550,000 a year role" as the council CEO.

Mr Bath earned $513,000 a year according to the most recent annual report, plus $50,000 a year for his role on the Newcastle Airport board.

"As residents and ratepayers to council, we are concerned that our rates are being used to pay this individual, whose integrity and worthiness to hold an office of public trust has been questioned," the petition said.

"We have lost trust in the CEO and the ability of City of Newcastle to properly manage this matter."

Mr Bath said the petition was created by "failed political candidates" as well as "anti-supercars activist" Christine Everingham.