He served for fourteen years until being defeated in the 1993 federal election in the renamed riding of North Island—Powell River.

This defeat was partly in response to the electorate's dissatisfaction with the provincial government led by New Democratic Party Premier Mike Harcourt.

As a result, 15 of 17 incumbent New Democratic Party parliamentarians failed in their re-election bids in 1993.

[1] During his time in Parliament, Skelly served as critic on several portfolios of particular concern to his constituents including economic development in Western Canada, fisheries, and mines & energy.

He is the brother of fellow politician Bob Skelly, who served in the Legislative Assembly of British Columbia and led the British Columbia New Democratic Party.