We hear a lot about how the private sector can save tax payers money.
But a scathing report published Thursday by Toronto city councillors points out that the private sector missed an opportunity to save taxpayers millions of dollars.
The report shows a private operator’s garbage collection was less effective and wasteful than traditional city services. By taking over the contract, the city saved a maximum of $4.8 million a year.
It all comes to a bit of a surprise given Mayor John Tory has touted the growth of private trash contractors in Toronto as a cost-saving measure.
“The way they did it was inconsistent with what they do on commercial properties,” said acting city solicitor Denyse Tuthill.
“It had a significant impact on service levels and the quality of service.”
The report suggests the city can save a significant amount of money through private contractors, which are becoming more prevalent on our cities.
“Transforming our resources is at the core of what this administration is doing,” Tory said in a statement.
“This report demonstrates that they will deliver on that commitment.”
The independent panel, which was set up after concerns were raised in September, recommended the city back the city’s current operating contract with Waste Management Toronto.
Waste Management Toronto Inc. currently supplies the city with trash services and costs taxpayers $53.1 million per year.
If the contract were to be broken, it would cost the city $38.2 million.
The report also recommends Toronto conduct an additional survey of residents after the contract expires.