Richard Pratt (Australian Businessman)
   HOME

TheInfoList



OR:

Richard J. Pratt (born Ryszard Przecicki; 10 December 193428 April 2009) was an Australian businessman, chairman of the privately owned company Visy Industries, and a leading figure of
Melbourne Melbourne ( , ; Boonwurrung language, Boonwurrung/ or ) is the List of Australian capital cities, capital and List of cities in Australia by population, most populous city of the States and territories of Australia, Australian state of Victori ...
society. In the year before his death, Pratt was Australia's fourth-richest person, with a personal fortune valued at  billion.


Early life

Ryszard Przecicki was born in the
Free City of Danzig The Free City of Danzig (; ) was a city-state under the protection and oversight of the League of Nations between 1920 and 1939, consisting of the Baltic Sea port of Danzig (now Gdańsk, Poland) and nearly 200 other small localities in the surrou ...
(present-day Gdańsk, Poland) to
Jewish Jews (, , ), or the Jewish people, are an ethnoreligious group and nation, originating from the Israelites of History of ancient Israel and Judah, ancient Israel and Judah. They also traditionally adhere to Judaism. Jewish ethnicity, rel ...
parents Leon and Paula on 10 December 1934. His family immigrated to Australia in 1938, seeking safe refuge from the
Nazis Nazism (), formally named National Socialism (NS; , ), is the far-right politics, far-right Totalitarianism, totalitarian socio-political ideology and practices associated with Adolf Hitler and the Nazi Party (NSDAP) in Germany. During H ...
, and settled in
Shepparton Shepparton () (Yorta Yorta language, Yortayorta: ''Kanny-goopna'') is a city located on the floodplain of the Goulburn River (Victoria), Goulburn River in northern Victoria (Australia), Victoria, Australia, approximately north-northeast of Mel ...
, Victoria, changing their surname from Przecicki to Pratt. Pratt had a rough journey travelling to Australia without getting caught by the Nazis. The family faced food shortages en route. Pratt was educated at Grahamvale Primary School, Shepparton High School, and University High School, and he enrolled in a Bachelor of Commerce degree at the
University of Melbourne The University of Melbourne (colloquially known as Melbourne University) is a public university, public research university located in Melbourne, Australia. Founded in 1853, it is Australia's second oldest university and the oldest in the state ...
in 1953. He played
Australian rules football Australian football, also called Australian rules football or Aussie rules, or more simply football or footy, is a contact sport played between two teams of 18 players on an Australian rules football playing field, oval field, often a modified ...
as a ruckman. After starting his career at Lemnos (now the Shepparton Swans), Pratt played for Carlton in the
Victorian Football League The Victorian Football League (VFL) is an Australian rules football competition in Australia operated by the Australian Football League (AFL) as a second-tier, regional, semi-professional competition. It includes teams from clubs based in east ...
's (VFL) under-19s competition. He was awarded the Morrish Medal in 1953 for being deemed the "
best and fairest In Australian sport, the best and fairest award recognises the player(s) adjudged to have had the best performance in a game or over a season for a given sporting club or competition. The awards are sometimes dependent on not receiving a suspensi ...
" 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 with the
Union Theatre Repertory Company The Melbourne Theatre Company is a theatre company based in Melbourne, Victoria, Australia. Founded in 1953 as the Union Theatre Repertory Company at the Union Theatre at the University of Melbourne, it is the oldest professional theatre com ...
and working as salesman for the family business, Visy Board. After touring
London London is the Capital city, capital and List of urban areas in the United Kingdom, largest city of both England and the United Kingdom, with a population of in . London metropolitan area, Its wider metropolitan area is the largest in Wester ...
and
New York New York most commonly refers to: * New York (state), a state in the northeastern United States * New York City, the most populous city in the United States, located in the state of New York New York may also refer to: Places United Kingdom * ...
in 1957 with a production of Ray Lawler's '' Summer of the Seventeenth Doll'', playing the role of Johnnie Dowd, he returned to Melbourne and Visy. He also appeared on television.


Business career

Following the death of his father Leon in February 1969, Pratt took over his father's business at Visy Industries, which at that time had several hundred employees and an annual turnover of A$5 million. 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, officially the Independent State of Papua New Guinea, is an island country in Oceania that comprises the eastern half of the island of New Guinea and offshore islands in Melanesia, a region of the southwestern Pacific Ocean n ...
. From cardboard boxes and packaging, Visy moved into waste paper recycling. Later in the 1990s, Pratt expanded his operations considerably into the
New York New York most commonly refers to: * New York (state), a state in the northeastern United States * New York City, the most populous city in the United States, located in the state of New York New York may also refer to: Places United Kingdom * ...
waste paper business. In 1993, the National Crime Authority (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 BHP 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 & Consumer Commission The Australian Competition and Consumer Commission (ACCC) is the chief competition regulator of the Government of Australia, located within the Department of the Treasury. It was established in 1995 with the amalgamation of the Australian Tra ...
(ACCC) to pay a half-million-dollar fine for illegal anti-competitive behaviour.


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 The Swinburne University of Technology (or simply Swinburne) is a public university, public research university in Melbourne, Australia. It is the modern descendant of the Eastern Suburbs Technical College established in 1908, renamed Swinburne ...
, president of the
Victorian Arts Centre Arts Centre Melbourne, originally known as the Victorian Arts Centre and briefly called the Arts Centre, is a performing arts centre consisting of a complex of theatres and concert halls in the Melbourne Arts Precinct, located in the central M ...
Trust, and Chairman of the Board of Management of the Mental Health Research Institute of Victoria. Through 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 also donated considerable funds to both major political parties (for example, A$300,000 in Financial Year 2004–05), as well as to
Prime Minister A prime minister or chief of cabinet is the head of the cabinet and the leader of the ministers in the executive branch of government, often in a parliamentary or semi-presidential system. A prime minister is not the head of state, but r ...
John Howard John Winston Howard (born 26 July 1939) is an Australian former politician who served as the 25th prime minister of Australia from 1996 to 2007. He held office as leader of the Liberal Party of Australia. His eleven-year tenure as prime min ...
's Liberal government. In 1996, an investigation by ''
The Australian ''The Australian'', with its Saturday edition ''The Weekend Australian'', is a broadsheet daily newspaper published by News Corp Australia since 14 July 1964. As the only Australian daily newspaper distributed nationally, its readership of b ...
'' newspaper documented from internal company documents that Pratt maintained a multimillion-dollar network of advisors. This included an $8,300-a-month fee to
Bob Hawke Robert James Lee Hawke (9 December 1929 – 16 May 2019) was an Australian politician and trade unionist who served as the 23rd prime minister of Australia from 1983 to 1991. He held office as the Australian Labor Party, leader of the La ...
for consultation on "Asian and government matters", $27,000 for travel to the US for
Gough Whitlam Edward Gough Whitlam (11 July 191621 October 2014) was the 21st prime minister of Australia, serving from December 1972 to November 1975. To date the longest-serving federal leader of the Australian Labor Party (ALP), he was notable for being ...
as business advisor on overseas markets, and other sums for former state premiers Nick Greiner and Rupert Hamer.


Sports administration career


Carlton Football Club President

On 8 February 2007, he was appointed President of the
Carlton Football Club The Carlton Football Club, nicknamed the Blues, is a professional Australian rules football club based at Princes Park (stadium), Princes Park in Carlton North, Victoria, Carlton North, an inner suburb of Melbourne in Victoria, Australia. The c ...
, after being elected by the board of the club, when he replaced Graham Smorgon. In his tenure as Carlton Football Club President, Pratt was largely responsible for overseeing major changes at Carlton Football Club, which would help put the club back on track to become a powerhouse again where Pratt was also largely responsible for bringing in major sponsor Hyundai and for helping the Blues crack 40,000 members for the first time. One of the other major changes to the club's administration in Pratt's tenure as President of the club was the appointment of Steven Icke as General Manager of Football Operations and the appointment of former CEO of
Collingwood Football Club The Collingwood Football Club, nicknamed the Magpies or colloquially the Pies, is a professional Australian rules football club based in Melbourne, Victoria that competes in the Australian Football League (AFL), the sport's elite competition. ...
, Greg Swann as the CEO of Carlton Football Club. The club also returned to a stable off-field position during Pratt's presidency. 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 the ACCC hearing were resolved. Stephen Kernahan then took over and replaced Pratt as President of the Carlton Football Club.


Personal life

In 1959, Richard Pratt married Jeanne (née Lasker), a journalist, who was also a Jewish immigrant from Poland, born in the town of
Łowicz Łowicz is a town in central Poland with 27,436 inhabitants (2021). It is situated in the Łódź Voivodeship. Together with a nearby station of Bednary, Łowicz is a major rail junction of central Poland, where the line from Warsaw splits into ...
in 1936, and before their marriage lived in Sydney. 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; their main home was the historic mansion Raheen, in the Melbourne suburb of
Kew Kew () is a district in the London Borough of Richmond upon Thames. Its population at the 2011 census was 11,436. Kew is the location of the Royal Botanic Gardens ("Kew Gardens"), now a World Heritage Site, which includes Kew Palace. Kew is ...
, the former residence of Roman Catholic Archbishop Daniel Mannix. The Pratts have had three children, Anthony, Heloise Waislitz, who was married to businessman and Collingwood Football club Vice President Alex Waislitz, and Fiona Geminder. Another daughter, Paula, was born in 1997 to his longtime mistress, 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, Pratt was accused of trying to pay hush money to the nanny who had launched legal action against Ms Hitchcock. Pratt was the godfather of Deborah Beale, who is the former wife of
Bill Shorten William Richard Shorten (born 12 May 1967) is an Australian former politician and trade unionist. He was the leader of the Australian Labor Party (ALP) and Leader of the Opposition (Australia), Leader of the Opposition from 2013 to 2019. He also ...
and daughter of Julian Beale. 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

Pratt donated A$10 million every year through the Pratt Foundation to refugees, artists and others. The Foundation was established in 1978 by Jeanne and Richard Pratt as a vehicle for their philanthropy. During the 1980s and 1990s, the Pratts became known in Australia for funding the arts, medical research and higher education. Since then, the Pratt family has donated about A$200 million to worthy causes. Jeanne also set up
The Production Company The Production Company was an Australian not-for-profit theatre company that staged a series of usually three musicals at the Arts Centre Melbourne each year. It was launched in 1999 by Jeanne Pratt AC with the goal of providing "professional o ...
, which produced musicals in Melbourne from 1999–2020.


Conviction for price fixing

In December 2005, the ACCC commenced a civil penalty proceeding against Visy companies, Pratt, and others, for alleged involvement in a
cartel A cartel is a group of independent market participants who collaborate with each other as well as agreeing not to compete with each other in order to improve their profits and dominate the market. A cartel is an organization formed by producers ...
in the packaging industry. On 10 October 2007, Pratt was formally accused of
price fixing Price fixing is an anticompetitive 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 ...
, cheating customers and companies out of approximately A$700 million in the nation's biggest-ever cartel case. The ACCC 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 A mobile phone or cell phone is a portable telephone that allows users to make and receive calls over a radio frequency link while moving within a designated telephone service area, unlike fixed-location phones ( landline phones). This radio ...
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, 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). 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 $36 million fine, representing both the largest fine in Australian history and an estimated 0.75% of the Pratt fortune.
Federal Court of Australia The Federal Court of Australia is an Australian superior court which has jurisdiction to deal with most civil disputes governed by federal law (with the exception of family law matters), along with some summary (less serious) and indictable (mo ...
judge Justice Heerey said 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 initiated claims against Visy and Amcor, including a $120 million suit by
Cadbury Schweppes Cadbury, formerly Cadbury's and Cadbury Schweppes, is a British multinational corporation, multinational confectionery company owned by Mondelez International (spun off from Kraft Foods, Inc., Kraft Foods) since 2010. It is the second-largest c ...
against Amcor.


Criminal prosecution for impropriety

On 19 June 2008, Pratt was charged with lying about his knowledge of a price-fixing scandal. 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 during its successful investigation into the Visy/Amcor 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 believed the prosecution would have succeeded. Pratt died the following day.


Honours

Pratt was appointed an
Officer of the Order of Australia The Order of Australia is an Australian honours and awards system, Australian honour that recognises Australian citizens and other persons for outstanding achievement and service. It was established on 14 February 1975 by Elizabeth II, Monarch ...
(AO) in 1985, and a Companion of the Order (AC) in 1998. Jeanne Pratt has also been appointed a Companion of the Order of Australia. However, Richard Pratt returned his awards in February 2008 after he was fined A$36 million for price fixing. On 16 May 2007, he was awarded the Woodrow Wilson Medal for
Corporate Citizenship Corporate social responsibility (CSR) or corporate social impact is a form of international private business self-regulation which aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in, with, or s ...
. 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". In April 2010, to mark the first anniversary of his death, the inaugural Richard Pratt Memorial Oration was delivered at the
University of Melbourne The University of Melbourne (colloquially known as Melbourne University) is a public university, public research university located in Melbourne, Australia. Founded in 1853, it is Australia's second oldest university and the oldest in the state ...
by the president of the
Hebrew University of Jerusalem The Hebrew University of Jerusalem (HUJI; ) is an Israeli public university, public research university based in Jerusalem. Co-founded by Albert Einstein and Chaim Weizmann in July 1918, the public university officially opened on 1 April 1925. ...
, Professor Menahem Ben-Sasson. During the oration, Pratt was posthumously awarded an honorary Doctorate of Philosophy from Hebrew University. In every
Carlton Football Club The Carlton Football Club, nicknamed the Blues, is a professional Australian rules football club based at Princes Park (stadium), Princes Park in Carlton North, Victoria, Carlton North, an inner suburb of Melbourne in Victoria, Australia. The c ...
home match against the
Collingwood Football Club The Collingwood Football Club, nicknamed the Magpies or colloquially the Pies, is a professional Australian rules football club based in Melbourne, Victoria that competes in the Australian Football League (AFL), the sport's elite competition. ...
in the
Australian Football League The Australian Football League (AFL) is the pre-eminent professional sports, professional competition of Australian rules football. It was originally named the Victorian Football League (VFL) and was founded in 1896 as a breakaway competition ...
, the winner takes home a cup named after Pratt.


References


External links


"Some Inspirational People"
profiled by Laurence Muir. {{DEFAULTSORT:Pratt, Richard 1934 births 2009 deaths Australian billionaires Carlton Football Club administrators Shepparton Swans Football Club players Recycling industry Former companions of the Order of Australia Australian white-collar criminals Deaths from cancer in Victoria (state) Deaths from prostate cancer in Australia Jewish emigrants from Nazi Germany to Australia People from Shepparton Businesspeople from Melbourne People from the Free City of Danzig Businesspeople from Gdańsk Australian rules footballers from Victoria (state)