Ratepayers' organisations from Whangaparaoa and Orewa also want the council to pursue the money, and all three groups have been buoyed by advice from the Auditor-General to take their concerns to Mayor Len Brown and Super City councillors.
Kaukapakapa ratepayers association secretary Crispin Caldicott told councillors yesterday that the payments represented a cavalier attitude towards public funds.
Mr Brown and council chief executive Doug McKay had made excuses for not recovering the money.
"There are many in this country who have to make do on less than $42,000 a year - yet they are still obliged to pay their rates which rise every year. We very much doubt if the Auckland Council would write-off a debt of $42,000 owed by ratepayers," Mr Caldicott said.
Another Rodney ratepayer, Tom Parsons, said: "In the 20-plus years I have been here all the rates I have paid have just walked out the door with someone who is not legally entitled to them."
Yesterday, Mayor Brown stopped debate on the issue, for the council to get "proper advice".
But council lawyer Wendy Brandon later told the Herald that the council had no intention of pursuing Mr Kerr-Newell.
Mr Kerr-Newell, who is believed to be living in Auckland, could not be reached for comment.
THE FIGURES
$300,000 Rodger Kerr-Newell's salary
$349,200 termination payment
$42,000 the Auditor-General says he should not have received