The City of Toronto is overestimating the savings that would come from privatizing garbage collection, says a report from the Toronto Environmental Alliance.

The report, which is titled "Look Before You Leap," argues that privatizing garbage collection would only save $2 million annually, not the $6 million the city has promised.

TEA says studies should be done regarding the effect privatization would have on Toronto's desire to divert waste from landfills.

"We found lots of example of private sector companies not doing a good job on waste diversion. We don't know whether that is the exception or the rule," Franz Hartmann, the executive director of TEA, told CP24. "No studies have really been done that really look at the link between privatization and waste diversion levels and we think councillors need to have that information before making such an important decision."

The report, which examined a number of other major cities with privatized waste collection, was released in advance of a May 17 meeting where council will consider a staff report from the Public Works and Infrastructure Committee. That report recommends immediately proceeding with privatizing waste collection services. Council would give staff final authority on the contract language and total.

On Monday, Ward 20 Coun. Adam Vaughan told CP24 that the report raises important questions.

"Putting aside the ideological debate of public versus private the issues is this: How do me wake sure we are giving good value for the dollar and good customer service while making sure the environment stewardship for which this city is famous for is sustained?" he said. "What we are being told right now is that we won't even get to look at the contract. You wouldn't even buy a house or lease a car without looking at the contract."

Geoff Rathbone, the departing manager of solid waste management, has said that privatizing waste collection from Etobicoke to Yonge Street would save the city $7 million annually, with $1 million of that being spent on supervision and oversight of the new service.

TEA argues that supervision and oversight would cost about $4.5 million or about 20 per cent of the cost of the contract.

The alliance calls on council to reject the staff report and instead research the true cost, both financial and otherwise, of privatizing garbage collection.