Last week a major player in the history of Prince Rupert’s development passed away, a name that for good or for bad, was synonymous with controversy in the history of Prince Rupert.
George S. Petty, the former owner of the Skeena pulp mill and its wide interests in the northwest, passed away last Wednesday (March 15), bringing a close his tempestuous association with the Northwest.
Petty, who first appeared on the scene in 1986 became one of those classic hero and villain characters, sometimes in the same week. Depending where you were on the local spectrum at the time, you either respected the guy’s drive or despised of his managerial style. One thing is certain no one could ever say that they didn’t have an opinion about George S. Petty.
Legendary for his bluster at the bargaining table with local unions, he oversaw the rebirth of the then financially troubled mill, only to see things come crashing to the ground leaving in its wake the now idled mill at Watson Island and a shattered local economy. He shared both in the credit for its successes and in the blame for it’s eventual failure, though one suspects that there is enough blame and responsibility to go around about the happenings of Skeena at the time.
While he held the helm of the Mill however, it was a wild ride, more akin to the old days of the mill boss in a mill town and more suited it seemed to labour relations of the days of thirties as opposed to the late eighties and early nineties. Many grew concerned over his other ventures and the flow of venture capital to and fro, his pet project a new style of pulp processing in New Brunswick was perhaps the most controversial of the time, many fearing that his fascination with the new technology was draining monies from his other operations, including those in the Northwest.
At the time, those operations did provide paycheques to local families and Skeena was certainly the engine of a community that was continuing to take hits in its fishing industry. When times were good, the money was flowing throughout the city and as we have seen when it closed, the resulting earthquake would have long standing ramifications.
Certainly, as the closure of the mill has shown, the mill while in operation was by far the greatest contributor to the economy of the city and still causes a sizeable shadow over the financial well being a community in economic transition.
Petty even made a return to the scene for a brief replay with the much discussed and eventual disappointment of the New Skeena option, a bid that fell short and left many once again shaking their heads locally about the roller coaster ride they had just gone on.
It’s of interest to note of his passing, as once again the mill he called “the bane of his professional life” once again returns to the local radar, as the latest suitor for the operation the China Paper Company weighs their options as to whether they will operate the mill. Their decision is anticipated for April 27th, when the next chapter of Petty's former mill will be decided.
During his time as owner of the mill, he certainly became as well know a citizen as any other that came to the Northwest to run their industries and chase their dreams. In a city full of colorful characters through the years, Petty surely made his own contribution to the tone and timbre (not to mention timber) of the local area.
Below in Podunkicized form is the Daily News report of his passing from last week.
FORMER SKEENA MILL BOSS DEAD AFTER SURGERY
THE DAILY NEWS
THURSDAY, MARCH 16, 2005
PAGE THREE
George S. Petty, a man known for more than three decades of work rebuilding mills across Canada, died last night from complications arising from kidney transplant surgery. The 72 year old passed away peacefully in Key West, Florida.
Petty was known for purchasing, refinancing and revitalizing nine pulp and paper mills, which had been shut down by previous owners, between 1972 – 1997 – including Skeena Cellulose and then New Skeena Forest Products.
During roughly the same period, companies under his control are said to have created 10,000 skilled jobs.
Repap Enterprises, which he took public on the Toronto and Montreal Stock Exchange in 1986, is credited with investing in excess of $2 billion between 1980 and 1995, and another company he helped found Tembec Inc. went on to become a major factor in the Canadian Forest Industry, with more than 50 different operations around the world.
Based in Temiscaming, Quebec, Tembec was created in 1973 when the eastern Canadian community refused to give up on the old Canadian International Paper Co. pulp mill that was being shut down. Local entrepreneurs unionized workers, the community and different levels of government forged a company that had employee-profit sharing and control through a board of directors. Petty left Tembec in 1978 to run Repap Enterprises and Skeena Cellulose, which shut down in 1997.
Petty acquired Prince Rupert’s Skeen Market Pulp Mill and Terrace sawmills and related woodlands in 1986 from the government for $109 million and, after initial success, was blamed for later troubles.
In 2002, he was the chair of NWBC Timber and Pulp, and a driving force behind the repurchase of Skeena from the provincial government.
At the time of the purchase, Petty told Daily News reporters it was the Skeena operation, which he as then struggling to revive with partner, CEO Dan Veniez, which had been the bane of his professional life.
He said it was his goal to revive Skeena through his new company New Skeena Forest products and the Northwest economy along with it.
Petty’s career in the pulp and paper industry began in 1954. During that time, he has held the position of the chairman of the Canadian Pulp and Paper Association and a director of the American Paper Institute and the Pulp and Paper Research Institute of Canada
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