Dublin City Manager John Tierney has said the council would have had to double bin charges if it continued its waste collection service.
Mr Tierney was speaking at a special council meeting called following an unprecedented level of complaints about the new service from the private company Greyhound.
Mr Tierney said criticism about the communication concerning the new privatised service by Greyhound was justified.
But he said the privatisation was made to ensure that Dublin city customers paid the lowest possible price.
He said if the council had continued waste collection, it would have to find an extra €50m over the next six years.
But the majority of the councillors voted for a Fianna Fáil motion calling on the council to resume its service.
They conceded that they had no power and also called for new legislation to change this.
Many councillors spoke of a complete failure of council management during the changeover.
Meanwhile Assistant City Manager Seamus Lyons said issues over the redeployment of waste collection staff will probably go to the Labour Court.
