Richard Pratt (Australian businessman)
Encyclopedia
Richard J. Pratt was a prominent Australian
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

 businessman, chairman of the privately-owned company Visy Industries
Visy Industries
Visy Industries was established in Melbourne, Australia in 1948 and is headquartered at Level 11, 2 Southbank Boulevard,Melbourne, Australia. It has grown to become one of the world’s largest privately-owned paper recycling and packaging companies. In 2003, Visy employed more than 8000 people...

, and a leading figure of Melbourne
Melbourne
Melbourne is the capital and most populous city in the state of Victoria, and the second most populous city in Australia. The Melbourne City Centre is the hub of the greater metropolitan area and the Census statistical division—of which "Melbourne" is the common name. As of June 2009, the greater...

 society. In the year before his death Pratt was Australia's fourth-richest person, with a personal fortune valued at billion. Pratt was appointed an Officer and later a Companion of the Order of Australia
Order of Australia
The Order of Australia is an order of chivalry established on 14 February 1975 by Elizabeth II, Queen of Australia, "for the purpose of according recognition to Australian citizens and other persons for achievement or for meritorious service"...

, however, he returned his awards in February 2008 after he was fined $36 million for price fixing.

Early life

Pratt was born in the Free City of Danzig
Free City of Danzig
The Free City of Danzig was a semi-autonomous city-state that existed between 1920 and 1939, consisting of the Baltic Sea port of Danzig and surrounding areas....

 (modern Gdańsk
Gdansk
Gdańsk is a Polish city on the Baltic coast, at the centre of the country's fourth-largest metropolitan area.The city lies on the southern edge of Gdańsk Bay , in a conurbation with the city of Gdynia, spa town of Sopot, and suburban communities, which together form a metropolitan area called the...

), Poland
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...

 of Polish Jewish parents on 10 December 1934. His family emigrated to Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...

 in 1938 and settled in Shepparton
Shepparton, Victoria
Shepparton is a city located on the floodplain of the Goulburn River in the north east of Victoria, Australia approximately north-east of Melbourne. It is the fifth largest city in Victoria, Australia. The estimated population of Shepparton's statistical area is 48,926.It began as a sheep station...

, Victoria
Victoria (Australia)
Victoria is the second most populous state in Australia. Geographically the smallest mainland state, Victoria is bordered by New South Wales, South Australia, and Tasmania on Boundary Islet to the north, west and south respectively....

, changing their surname from Przecicki to Pratt. Pratt was educated at Grahamvale Primary School, Shepparton High School
Shepparton High School
Shepparton High School is a public secondary school in Shepparton, Victoria, Australia. The school was founded in 1909 as Shepparton Agricultural High School and was one of the first High Schools built in Victoria during that era...

 and University High School
University High School, Melbourne
The University High School is a public, co-educational high school, located in the Melbourne suburb of Parkville.-History:...

 and enrolled in a Bachelor of Commerce degree at the University of Melbourne
University of Melbourne
The University of Melbourne is a public university located in Melbourne, Victoria. Founded in 1853, it is the second oldest university in Australia and the oldest in Victoria...

 in 1953. He also played Australian rules football
Australian rules football
Australian rules football, officially known as Australian football, also called football, Aussie rules or footy is a sport played between two teams of 22 players on either...

, as a ruckman. After starting his career at Lemnos (now the Shepparton Swans
Shepparton Swans Football Club
The Shepparton Swans Football Club are an Australian rules football club which compete in the Goulburn Valley Football League.Until 1999, the Swans were known as a Lemnos Football Club.-External links:*...

), Pratt played for Carlton
Carlton Football Club
The Carlton Football Club is a professional Australian rules football club based in Melbourne, Victoria. The club competes in the Australian Football League, and was one of the eight founding members of that competition in 1897...

 in the Victorian Football League
Australian Football League
The Australian Football League is both the governing body and the major professional competition in the sport of Australian rules football...

's (VFL) under-19s competition. He was awarded the Morrish Medal
Morrish Medal
The Morrish Medal is an Australian rules football award.Formerly awarded to the Best and Fairest player in the VFL Under 19 competition , since 1992 the award has been given to the best player in the Victorian TAC Cup Under 18 competition.The Morrish Medal was named in honour of Tom Morrish, a...

 in 1953 for being deemed the "best and fairest
Best and Fairest
Best and Fairest is the term commonly used in Australian sport to describe the player adjudged to have had the best performance in a game or over a season for a given sporting club or competition while not receiving a suspension for misconduct or breaching the rules during that season.In the...

" U-19 player that year. Pratt did not continue his footballing career to senior VFL level, instead focusing on other interests.

Pratt combined study with acting and working as salesman for the family business, Visy Board
Visy Industries
Visy Industries was established in Melbourne, Australia in 1948 and is headquartered at Level 11, 2 Southbank Boulevard,Melbourne, Australia. It has grown to become one of the world’s largest privately-owned paper recycling and packaging companies. In 2003, Visy employed more than 8000 people...

. After touring London and New York with a production of Ray Lawler
Ray Lawler
Raymond Evenor Lawler is an influential Australian actor, dramatist and producer. His most notable play was his tenth, Summer of the Seventeenth Doll , which had its premiere in Melbourne in 1955. The play changed the direction of Australian drama...

's Summer of the Seventeenth Doll
Summer of the Seventeenth Doll
Summer of the Seventeenth Doll is a pioneering Australian play written by Ray Lawler and first performed at the Union Theatre in Melbourne, Australia, on 28 November 1955...

, he returned to Melbourne and Visy. Following the death of his father Leon in February 1969 Pratt took over his father's business, which at that time had several hundred employees and an annual turnover of A$
Australian dollar
The Australian dollar is the currency of the Commonwealth of Australia, including Christmas Island, Cocos Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu...

5 million.

Business career

Under Pratt’s direction, Visy expanded from two factories in Melbourne to more than 55 plants across Australia, United States, New Zealand, and Papua New Guinea
Papua New Guinea
Papua New Guinea , officially the Independent State of Papua New Guinea, is a country in Oceania, occupying the eastern half of the island of New Guinea and numerous offshore islands...

. From cardboard boxes and packaging, Visy moved into waste paper recycling
Paper recycling
Paper recycling is the process of recovering waste paper and remaking it into new paper products. There are three categories of paper that can be used as feedstocks for making recycled paper: mill broke, pre-consumer waste, and post-consumer waste. Mill broke is paper trimmings and other paper...

. Later in the 1990s Pratt expanded his operations considerably into the New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

 waste paper business.

In 1993 the National Crime Authority
National Crime Authority of Australia
The National Crime Authority was an Australian law enforcement agency established in 1984.In 2003 it was superseded by the Australian Crime Commission .The NCA was set up in the wake of the Costigan Commission into tax evasion and organised crime...

 (NCA) raided Pratt's offices in connection with an investigation into businessman John Elliott's foreign exchange dealings and Elliott's spoiling domestic stake in Broken Hill Proprietary Company (BHP, now BHP Billiton) while Elliott's company, Elders IXL, was insolvent. The following year, NCA paid costs and returned documents seized.

Also in the 1990s, Visy was ordered by the Australian Competition and Consumer Commission
Australian Competition and Consumer Commission
The Australian Competition and Consumer Commission is an independent authority of the Australia government. It was established in 1995 with the amalgamation of the Australian Trade Practices Commission and the Prices Surveillance Authority to administer the Trade Practices Act 1974...

 (ACCC) to pay a half million dollar fine for illegal anti-competitive behaviour.

On 16 May 2007, he was awarded the Woodrow Wilson Medal for Corporate Citizenship
Corporate citizenship
Corporate citizenship is a term used to describe a company's role in, or responsibilities towards society. For this reason it is sometimes used interchangeably with corporate social responsibility, and in fact many companies including Microsoft, IBM and Novartis have used it in this way to describe...

. This is given to executives who,
...by their examples and their business practices, have shown a deep concern for the common good beyond the bottom line. They are at the forefront of the idea that private firms should be good citizens in their own neighborhoods and in the world at large

Public career

As well as his business interests, Pratt was known for his involvement in public service, having held posts including: foundation chancellor of Swinburne University of Technology
Swinburne University of Technology
Swinburne University of Technology is an Australian public dual sector university based in Melbourne, Victoria. The institution was founded by the Honourable George Swinburne in 1908 and achieved university status in June 1992...

, president of the Victorian Arts Centre Trust, and Chairman of the Board of Management of the Mental Health Research Institute of Victoria
Mental Health Research Institute (Melbourne)
The Mental Health Research Institute is one of Victoria's laboratory psychiatric research centres. It aims to lead cutting edge research focused upon improving the diagnosis, treatment and prevention of major mental disorders....

.

Through the Pratt Foundation
Pratt Foundation
The Pratt Foundation is an Australian philanthropic organisation established in 1978 by Jeanne and Richard Pratt based in Melbourne, Victoria.According to its Values Statement, it has "the shared vision of supporting charitable enterprises and adding value to philanthropy". The Pratt Foundation...

, the Pratt family are among Australia's leading philanthropists donating up to A$10 million a year. Pratt was named Environmental Visionary of the Year in 1998 by the Keep Australia Beautiful Campaign. Pratt was appointed Officer of the Order of Australia (AO) in 1985, and Companion of the Order of Australia (AC), Australia's highest honour, in 1998. His wife, Jeanne, is also an AC recipient.

On 8 February 2007 he was appointed president of the Carlton Football Club
Carlton Football Club
The Carlton Football Club is a professional Australian rules football club based in Melbourne, Victoria. The club competes in the Australian Football League, and was one of the eight founding members of that competition in 1897...

. On 20 June 2008 the Carlton Football Club announced that Richard Pratt would stand aside from the club until the charges of giving false and misleading evidence to an Australian Competition and Consumer Commission
Australian Competition and Consumer Commission
The Australian Competition and Consumer Commission is an independent authority of the Australia government. It was established in 1995 with the amalgamation of the Australian Trade Practices Commission and the Prices Surveillance Authority to administer the Trade Practices Act 1974...

 hearing were resolved.

Pratt also donated considerable funds to both major political parties (for example A$300,000 in Financial Year 2003-4), as well as to former Australian Prime Minister John Howard
John Howard
John Winston Howard AC, SSI, was the 25th Prime Minister of Australia, from 11 March 1996 to 3 December 2007. He was the second-longest serving Australian Prime Minister after Sir Robert Menzies....

's Liberal government. In 1996 an investigation by The Australian
The Australian
The Australian is a broadsheet newspaper published in Australia from Monday to Saturday each week since 14 July 1964. The editor in chief is Chris Mitchell, the editor is Clive Mathieson and the 'editor-at-large' is Paul Kelly....

 newspaper documented from internal company documents that Pratt maintained a multi-million-dollar network of advisors. This included an $8,333.33 a month fee to Bob Hawke
Bob Hawke
Robert James Lee "Bob" Hawke AC GCL was the 23rd Prime Minister of Australia from March 1983 to December 1991 and therefore longest serving Australian Labor Party Prime Minister....

 for consultation on "Asian and government matters", $27,220.03 for travel to the US for Gough Whitlam
Gough Whitlam
Edward Gough Whitlam, AC, QC , known as Gough Whitlam , served as the 21st Prime Minister of Australia. Whitlam led the Australian Labor Party to power at the 1972 election and retained government at the 1974 election, before being dismissed by Governor-General Sir John Kerr at the climax of the...

 as business adviser on overseas markets, and other sums for former state premiers Nick Greiner
Nick Greiner
Nicholas "Nick" Frank Hugo Greiner AC, is an Australian businessman and former politician. He was the 37th Premier New South Wales from 1988 to 1992. He was Leader of the New South Wales Division of the Liberal Party from 1983 to 1992 and Leader of the Opposition from 1983 to 1988. He is married...

 and Rupert Hamer
Rupert Hamer
Sir Rupert James Hamer, AC, KCMG, ED , generally known until he was knighted in 1982 as Dick Hamer, Australian Liberal Party politician, was the 39th Premier of Victoria, serving from 1972 to 1981.-Early years:...

.

Personal life

Richard Pratt was married to Jeanne Pratt (née Lasker) for nearly 50 years. After the success of Visy Industries, they enjoyed a lavish lifestyle, with a private jet and a range of apartments, including a penthouse at the Sherry-Netherland Hotel in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...

; their main home was the historic mansion Raheen
Raheen (estate)
Raheen is an historic 19th-century Italianate mansion located at 92 Studley Park Road in the Melbourne, Australia, suburb of Kew. It was built in the 1870s, and its name means "little fort" in Gaelic....

, in the Melbourne suburb of Kew
Kew, Victoria
Kew is a suburb in Melbourne, Victoria, Australia, 6 km east from Melbourne's central business district. Its Local Government Area is the City of Boroondara. At the 2006 Census, Kew had a population of 22,516....

, the former residence of Roman Catholic Archbishop Daniel Mannix
Daniel Mannix
Daniel Mannix was an Irish-born Australian Catholic bishop. Mannix was the Archbishop of Melbourne for 46 years and one of the most influential public figures in 20th century Australia....

. The Pratts had three grown children, Anthony, Heloise and Fiona.

Another daughter, Paula, was born in 1997 to his longtime mistress, Sydney socialite Shari-Lea Hitchcock. In 2000 this affair became the subject of widespread media attention owing to a court case involving Ms Hitchcock and a nanny hired to look after her daughter. At the time, Mr Pratt was accused of trying to pay hush money to the nanny who had launched legal action against Ms Hitchcock.

After a well-publicised battle with prostate cancer, Richard Pratt died at his Kew residence on 28 April 2009, the day after all charges against him had been dropped due to his ill-health.

Philanthropy

He donated $10 million every year through the Pratt Foundation to refugees, artists and others.

Conviction for price fixing

In December 2005 the ACCC
Australian Competition and Consumer Commission
The Australian Competition and Consumer Commission is an independent authority of the Australia government. It was established in 1995 with the amalgamation of the Australian Trade Practices Commission and the Prices Surveillance Authority to administer the Trade Practices Act 1974...

 commenced a civil penalty proceeding against Visy companies, Pratt, and others, for alleged involvement in a cartel
Cartel
A cartel is a formal agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products...

 in the packaging industry.

On 10 October 2007, Richard Pratt was formally accused of price fixing
Price fixing
Price fixing is an agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand...

, cheating customers and companies out of approximately A$700 million in the nation's biggest-ever cartel
Cartel
A cartel is a formal agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products...

 case. The ACCC
Australian Competition and Consumer Commission
The Australian Competition and Consumer Commission is an independent authority of the Australia government. It was established in 1995 with the amalgamation of the Australian Trade Practices Commission and the Prices Surveillance Authority to administer the Trade Practices Act 1974...

 alleged "very serious contraventions" of the law and that these had been "carefully and deliberately concealed" by Visy senior executives. The ACCC counsel further stated:
"There can be no suggestion that Visy acted in ignorance of its obligations under the act,"

and further added that the deliberate use of pre-paid mobile phones that could not be traced and the holding of meetings in private homes, motel rooms and suburban parks
"...provides a strong indication that Visy was fully aware that the conduct was illegal".


After more than a year of denials Pratt subsequently admitted his guilt, acknowledging he and his company, and "rival" company Amcor
Amcor
Amcor Limited is an Australian-based multinational packaging company. Its headquarters are in Hawthorn, Victoria ; and it is listed on the Australian Securities Exchange....

 deliberately broke the law. Pratt was aggrieved by the criminal prosecution and its effect on his reputation, stating:
"I feel very angry—Visy is seen as Richard Pratt's company—there is a certain amount of character assassination for me personally because I am a tall poppy in the community; it's a big scalp (for the ACCC
ACCC
ACCC may refer to:In Education:* Association of Canadian Community Colleges, a national association formed in 1972 to represent the interests of its member institutions to government and industry....

). My reputation is something I have been building for 50 years and so I am worried that the general public will now see me as a rich person who has made his money doing something that is wrong in the eyes of the law."


On 2 November 2007, Pratt and the Visy group received a A$36 million fine, representing both the largest fine in Australian history and an estimated 0.75% of the Pratt fortune. Federal Court judge Justice Heerey said Mr Pratt and his senior executives were knowingly concerned in the cartel, which involved price fixing and market sharing. "This is the worst cartel to come before the courts in 30-plus years," Justice Heerey said.

Additionally, customers of Visy have initiated claims against Visy and Amcor, including a $120 million suit by Cadbury Schweppes
Cadbury Schweppes
Cadbury is a confectionery company owned by Kraft Foods and is the industry's second-largest globally after Mars, Incorporated. Headquartered in Uxbridge, London, United Kingdom, the company operates in more than 50 countries worldwide....

 against Amcor.

Criminal prosecution for impropriety

On 19 June 2008, Pratt was charged with lying about his knowledge of a price-fixing scandal. Mr Pratt had been facing four separate charges under Section 5 of the Act, the penalty for each charge ranges from a fine of $2,200 to 12 months' jail.

On 27 April 2009, this criminal prosecution of Pratt for charges of impropriety (lying to the ACCC
ACCC
ACCC may refer to:In Education:* Association of Canadian Community Colleges, a national association formed in 1972 to represent the interests of its member institutions to government and industry....

 during its successful investigation into the Visy/Amcor
Amcor
Amcor Limited is an Australian-based multinational packaging company. Its headquarters are in Hawthorn, Victoria ; and it is listed on the Australian Securities Exchange....

 price fixing scandal) were abandoned on account of his poor health and impending death. However, Commonwealth Prosecutor Mark Dean SC told the Federal Court the Commonwealth Director of Public Prosecutions (CDPP) believed the prosecution would have succeeded. Pratt died the following day.

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
x
OK