Toronto could save almost $50 million a year if it contracted out all of its garbage collection and disposal, says a new study by the C.D. Howe Institute.

Canada’s largest city has the second highest garbage cost of nine centres studied. Currently, 20 per cent of the work is contracted, and 80 per cent performed by unionized civic workers.

It costs Toronto $127 per resident to deal with garbage each year, second only to Edmonton at $135. The other cities were under $100, with Ottawa coming in lowest at $53, followed by Winnipeg at $57.

Toronto contracts out trucking garbage to its Green Lane landfill near London which is operated by a contractor, so there are few additional savings there, said study author Benjamin Dachis. “The biggest chunk of the savings will come from contracting out collection and recycling.”

Contracting out has been championed by Councillor Doug Holyday (Ward 3, Etobicoke Centre) but he has not persuaded the administration under Mayor David Miller.

Holyday, who was mayor of Etobicoke when collection was contracted out in 1995, wants to see a comprehensive study, which he suspects would show that contracting-out would win the day.

“Certainly, Mayor Miller and others would never want a study done, but I would hope that under new leadership the city would do its own study to verify the figures,” Holyday said.

“I’m sure the figures are accurate and there is a large savings to be had by contracting out the garbage. That’s why we did it in Etobicoke and those savings live on to this very day.”

Mayoral candidate and current deputy mayor Joe Pantalone questioned the savings outlined in the study.

“I would like to see the details of that study and review it, but it doesn’t sound believable to me given all the research I’ve seen on the subject,” he said.

“I have the highest respect for Councillor Holyday… but I’m sure even he would agree a subject as complex as this means you cannot take anybody’s single statement as truth.”

Holyday said he’d like to see more clarity on the issue from the mayoral candidates.

“Are they willing to make comparisons? That’s all I ask,” he said. “We need to get tenders and compare because that’s the only way to know for sure.

“Competition will give us the best price. That’s what’s lacking here, in garbage and so many other areas as well.”