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(generated from captions) This program is not captioned. This program is live captioned by Ericsson Access Services. Hello and welcome to another week of 7.30. Tonight, the millionaire businessman, the company complans and the dairy -- collapse, and the dairy farmers owed millions.I didn't set out to, um, start a business and just to close it down. His drawings out of the business was $3.3 million, in 1 8 months.He's looking after no. 1. That's it.Also - recriminations in Federal Government ranks over the WA route. The more you focus on preferences and not on policy, the worse you will go with the electorate.And, the pedigree dogs struggling to breathe.I would say that upwards of 90% of these dogs do require upper airway surgery.Dairy farmers owed millions of dollars are demanding to know where their money has gone after the collapse of a Victorian milk broking company. National Dairy Products may have been trading insolvent for almost a year before going into involuntary administration last November owing creditors $6.8 million. Farmers say the money went into funding the lavish lifestyleof CEO epz epz, but -- echs eps, but he -- Tony Esposito, but he says he is the victim. Tony Esposito likes miming in his coffee -- milk in his coffee. This is Tony's world. His glittering mobile mansion provides the ideal backdrop for advertising and garaging for his fer raries. His -- Ferraris, Delta Goodrem sang at his daughter's birthday party.I'm devastated, I didn't set out to, um, start a business just to close it down.He's looking after no. 1, that's it. (LAUGHS) So, you know, um, yeah. (WHIST) -- (WHISTLE)

Gippsland dairy producer Alister Clyne is one of the farmers owed money and is the most out of pocket. On his figures, more than a million dollars. How do you cope with $1.14 million gone?Oh, it's, um, bloody hard. I'd recently bought the farm across the road, then all of a sudden, you're, like, you know, all your income for two months just gets stripped right out of your business. He's had to borrow another twlaoe -- three quarters of a million dollars just to pay the bills. 10 minutes down the road is Mr Alister Clyne's business, Fiona Plant. She says her family is owed $500,000.It is a monumental challenge. We've culled 250 cattle and tried to pay down debt. As far as impact on our family, it is a really difficult situation.Fiona Plant and Alister Clyne were creditors who voted last month to put Mr Esposito's company into liquidation.The assets that he's built with our money needs to be liquidated, and we need to recover whatever money we can get. Which the liquidator Deloitte says may not be much. It's investigating whether Tony and Violtta Esposito, breached corporate law. In a preliminary report, the liquidator found NDP never operated profitably. It found NDP may have been trading while insolvent for almost a year before it collapsed. Tony Esposito says he paid farmers a higher price for their milk than their competitors and got caught out in the dairy market crash last year. There wouldn't be an agri business in this world that isn't trading insolvent at many times.The situation was not of anybody's making other than Tony's, and what we need is him to just fix up his mistakes by paying the money that he owes to everybody.Darryl Cardona claims that his family's company is owed $500,000 that he allegedly lent the business, a claim that Tony Esposito absolutely denies.These are the offices we worked in for about 12 months. They're currently vacant. Mr Cardona has known Mr Esposito for about 20 years. He worked in a previous milk business which Mr Esposito sold three years ago for $70 million. Darryl Cardona took up the reigns at NDP in September 2015 and is speaking out against his former boss for the first time.This is my office in here, where I worked out of for 12 months. We had approximately 25 dairy suppliers plus about 20 non-dairy suppliers such as transport companies and the like. Plus, we had about 12 customers and eight staff members.Mr Cardona says he became concerned about the company's finances in November 2015, when a farmer wasn't paid in full. One month earlier, Mr Esposito had celebrated his 5th birthday party at the -- 50th birthday parity at the plaza ballroom, paid for out of the company's account. 7.30 can reveal in the three months before the company stopped trading $300,000 was transferred to Tony Esposito's personal account. At the same time, NDP was defaulting on farmers' payments.His drawing out of the business was $3.3 million. In 18 months. That was $40,000 a week, that I worked out.But Mr Esposito vehemently denies any wrongdoing and says any money he withdrew was rightfully his.It was repayment of loans that I put into the business. I put in a total of about $8 million. I took back about three. That's - we are still owed just under $5 million.Tony Esposito didn't take kindly to Darryl Cardona speaking to 7.30. Since our interview he has sent abusive and threatening text messages to his employee.

Tony Esposito has told 7.30 that his texts were sent in the heat of the moment. He's accused Darryl Cardona of spreading lies about him. Mr Cardona has reported the messages to police. Tony Esposito says he could have made the business work if farmers hadn't walked away. So do you feel like, in fact, you're the victim here?To a degree, absolutely, because our intention was never to rip any farmers off. Our intention was to pay them as much as we could and make them sustainable and that was even at our loss.But that doesn't wash with Alister Clyne. He says the liquidator discovered that the last $20,000 in NDP's account was transferred to Tony Esposito just hours before the business went into vl tear administration -- into voluntary administration.That money could have gone towards paying farmers. It was only 20 grand. I was hanging out for 240,000 from my September cheque. I can't really. ..It's unfathomable. I don't...I don't recall to be honest, I don't recall. If that did happen, yeah, absolutely, and I put it back in. The liquidators say they want a courtroom examination of the company.I'm actually happy for that because I have done nothing wrong in that business at all.Whether it takes six weeks, 12 months, two years - I don't care how long it takes - I want as much of our money back as we can get. And I want to see him with a for sale sign on his mansion in Brighton.Fiona Plant may get her wish. Tony Esposito has told 7.30 he is preparing his Brighton mansion and another property for sale.Farmers will be paid.What would you say to Tony if you could see him right now?Show me the money.There is nothing like a massive election defeat for a bit of political bloodletting. The Liberal and National Parties in Western Australia are reeling after their crushing defeat in the weekend state election and it's causing ripples federally today too. In a second we will hear a take from a senior Queensland MP, as too whether it will cause issues there. First, here is Andrew Probyn's analysis. Pauline Hanson went West as the silent majority.Have you read the Koran? Parts of it, yes, I have.But the One Nation's leader barnstorming of Western Australia didn't quite go to plan.Pauline, it wasn't just Colin Barnett. It was an epic fail for One Nation. Are you a bit embarrassed about what happened on the weekend? No, not at all. I think it is fantastic. I'm so - I'm thrilled about it.For Labor and the Liberals, there's a mutual convenience in portraying One Nation's performance as a failure - either as a repudiation of its agenda...Today, Western Australians voted for hope and opportunity over desperation and division. (CHEERING) Or a rejection of its controversial preference deal with the ailing Barnett Government.I think the fixation of the media on that and not explaining that it's, like, say in my region, it was no. 13, where the first One Nation person got any so-called benefit from the Liberal preference deal, just indicates that I feel the media let us down. I'm Peter, your state member of Parliament.Peter Abetz is one of almost 20 Government MPs to lose their seats in the WA Bloodbath, suffering a huge swing against him of almost 20%.I think the perception of people, of One Nation, is one that it's a very disorganised mob, and I use that word 'mob' advisedly, in the sense that I don't think they know where they're going. They attracted a real odd-ball of candidates, with all sorts of weird and wonderful ideas, all wanting to have their say.There's a lot of anger in Liberal ranks, including in inner in city seats, where One Nation didn't even field a candidate.In the Perth electorate, I certainly believe it didn't go down well. It wasn't well received. I did hear on a number of occasions when I was out there, you know, that people were sort of struggling when I was out there, you know, that
people were sort of struggling with people were sort of struggling the concept of it. I don't know how it impacted in area areas but there was the general, you know, the general feedback I was getting was that people did feel quite uncomfortable with that deal.One Nation's headline share of the WA vote, about 5%, certainly wasn't as high as polls has suggested. While Pauline Hanson's critics revel in this apparent electoral flap -- flop, a deeper dive into the numbers shows a more come public story. One Nation didn't contest every lower House seat, got just under 10% in country seats and 7% of metro electorates its contested. In some seats it got 12%. This shows Pauline Hanson is a clear and present threat to the major parties.Even Anthony Greene has said we just had only half the number of seats in the lower Australia and we have pulled the vote across the board about 1.9% of the vote. That's a fantastic result.I assure you, I have given it my best shot in every sense. Whether or not the preference deal saved one or two Liberal seats is largic academic when the -- largely academic when the WA Government got oblib rated by a near 16 -- obliterated by a near 16% swing. And Finance Minister, Mathias Cormann, wasn't rushing to claim any responsibility for the deal when interviewed by 7.30.You shouldn't believe everything that you read. Were you involved at all?I won't go into the ins and outs of it. It was very much a decision of the party organisation. That is the way it was done.But, Senator, it's been reported that you were involved, so what's required is a yes or no answer?I'm not going to get into internal campaign tactics. What I'm saying to you is I'm not - any suggestion that I'm the architect is false. Beyond that, I am not going to into the ins and outs of it. Political parties like One Nation will always emerge in disaffection and upset. If the traditional parties of government lose the faith and trust of the voters, as Colin Barnett's Government did, skilled grievance merchants like Pauline Hanson can do well. In this way, One Nation feeds off the Labor base as much as it does the Liberal heartland. The antidote - job security, real wage growth, and affordable housing. But what if they're not achievable.There is a positive to this, I think it is this, that when One Nation and Hanson are put under screw -- under scrutiny, their policies are proved very shabby and not able to withstand that level of scrutiny. Crackpot candidates, Pauline Hanson's public love letter to Vladimir Putin, and her support for the anti-vaxxer movement all took their toll in the WA campaign. Her home state of Queensland will next cast judgement on One Nation, and any preference deal will have to be considered carefully.If I was to pass on any advice to the LNP, I'd say it will be on a seat by seat basis is as to where they'll get the best advantage to get the LNP person elected.Ewan Jones saw first-hand the economic conditions that allowed One Nation to prosper in regional Queensland.I lost my seat because we had 13% unemployment. I come from a city that has 180,000 people and we're 1400km away from our capital city. The closest capital city to Townsville is not Brisbane, but Port Moresby. That's how big it is. Those conditions can allow people like Pauline Hanson or One Nation to thrive.What's clear is that Malcolm Turnbull can't, and won't, follow Pauline Hanson to the right. In Australia, government is formed in the political centre.This is the critical point, just like John Howard was slow to learn, slow to appreciate, when Pauline Hanson is put under pressure, when her policies are properly scrutinised, then we can see a collapse in the Pauline Hanson, One Nation, support.

In a moment, I'll speak to the Resources Minister, Matt Canavan, but first we have some breaking news from Indonesia, where a court has just handed down a verdict in the case of Australian woman Sara Connor. She's charged with the murder of a Bali policeman. Samantha Hawley joins me on the phone. What's the verdict?The Australian woman, Sara Connor, has been sentenced to four years in prison. She remained calm throughout the ruling as the judges delivered their verdict. When they finished, she said that she would take time to consider whether she will appeal that sentence, or whether that will be accepted. And then she got up, very quickly, from the defendant's chair and walked out of the kroonl, before -- courtroom, before the mass of press surrounded her. So she will, as I said, decide whether to appeal the sentence, but she's been sentenced to four years in jail. Her co-accused, British man, David Taylor, learnt his fate just before her. He has been sentenced to six years in jail. Both of them, for assault causing death. Sam, what happens from here?Well, as I mentioned, there is an appeal process. The British man, David Taylor, has said that he will not appeal the sentence that he was given. It was two years less than prosecutors had demanded. They demanded eight years. He received six for his role in the killing of this police officer. Sara Connor now will be taken back to the prison in Bali. She says she'll consult her lawyers over whether to appeal. The danger, of course, of appealing is that a higher court could impose a stronger sentence than the lower than, so she will take time to consider that. But, for now, she's been sentenced to four years in jail and she'll be transferred back now to Bali's prison.Thank you, Samantha Hawley, for bringing us up-to-date with that. We go back to our earlier story on the ructions in Parliament following the WA Liberal's defeat on Saturday. I was joined earlier by Resources Minister, Matt Canavan. Minister, the next election will be the Queensland state election. Given what we have seen in Western Australia, should the LNP do a preference deal with One Nation in Queensland?I think what the Western Australian situation tells us is that the more you no cus on preferences and not on policy, the worse you will go with the electorate. We should focus on what we're going to deliver to Queenslanders. Yes, at some point, the LNP will have to produce a how-to-vote care because the Labor Party re-introduced compulsory preferential voting. But it should not be at the forefront of what we are considering right now. There is still some time to till the election. The LNP has policies to build dams in Queensland, bring back jobs in Queensland. That's what people want to hear from us.You focus on policy but Senator Mathias Cormann was one of the architects of that Western Australian deal and he points out the chance to maximise the holding of seats you have to secure preferences. What do you say to that? Ismgth I don't know all the details of how it came together, of course, not being Western Australian. All I would say is I don't think the deal was a good one. I think it has turned out to be a proven mistake. I think the electorate sees these kinds of things as tricky. You have to go to the electorate saying, "This is what we will do if you elect us. This is what we're about." You have to fill out the rest of the boxes. People care only about their no. 1 vote. They don't care much about their third, fourth or 18th vote. That's what we should be going to an election with. You talked about policy issues before. When you look at the sorts of policy issues that cause people to be fed up with government, you take, for example, on 7.30 last week we had a story about farmers and businesses in Bundaberg, in Queensland, who had such expensive power bills that they had turned to diesel as their primary source - how is it that for years now successive governments have allowed power prices to rise and rise and rise?Well, look, I'm not trying to make it partisan, Leigh, but when the Liberal-National Party was last in power in Queensland, they reduced power bills. They went to the election with a policy to fo -- policy to sell or lease public assets but return some of that to lower power bills further. That was. ..That was - yes, that was rejected.When you look at power prices, they have gone up and up and up.They have gone up but I reject the fact that various governments have done nothing about it. At the Federal Government level we got rid of the carbon tax and that was the bic -- biggest reduction in power prices in history. Some of the reasons the power prices have gone up are in order to re-invest in the network. But that does not mean we should further increase them again by turning our back on coal.You're in Japan to tour coal-fired power stations. You've floated the idea of using taxpayers' money to build a coal-fired power station in Queensland, why would that be a sound investment for taxpayer funs given there is no appetite for it. First of all, I don't accept the characterisation that there is no case here. Many businesses I have spoken to have a different view. Often, the people saying we shouldn't invest in coal have themselves coal-fired power assets. As I have said before, Leigh, I don't think we'd ask Coles and Woolworths, whether it is a good idea to bring ALDI to Australia, they obviously have vested interests. What I have as the Minister is to the Australian people, not other interests. Hundreds of ultra super critical coal-fire power stations are being operated around the world. They make sense. Whether or not a specific one in Australia would be of use is clearly something we have to look at forward. I'm very interested in northern Australia to make sure we encourage northern Australia and new energy infrastructure will be important in that part.In recent days we've had fresh warnings of a gas shortage in Australia. That's nothing new, with warnings from the industry as far back as 2012, 2013. There are proposals that Australia should keep more of the gas it produces in Australia for domestic use instead of exporting it. You've said you oppose that sort of a quota. The Prime Minister says that that sort of option should be on the table. What, then, is the government's official policy on this question of a domestic reservation? What I have said, clearly, Leigh, is it is not the best joit come. I think we'll -- outcome. I think we will have to consider although options now because various state and territory governments have unbelievably put restrictions on even conventional gas production, some of it has been banned in Victoria. It is remarkable, unpredictable. But we are where we are and now I'm looking to find solutions. When we meet with gas producers on Wednesday, we will be trying to find solutions. We need more gas development.It would be a ridiculous situation if Australia didn't have enough gas to meet its domestic needs at the same time that it was exporting gas?Clearly, that would be the case, if that was to eevent wait. I -- eventuate. I don't think we're quite there yet. We need to hear from industry as to how they'll respond to higher market prices to fill that demand domestically. Hopefully those discussions will profession further on webz with the Prime Minister. Thanks for your time. Buying a pedigree dog can cost pet owners thousands of dollars but what are they really getting for their money. According to the RSPCA, all short-nosed dogs such as pugs, Boston Terriers, bulldogs and the highly popular French bulldog are literally being bred to suffer. They may look cute but leading vets say most, if not all, require surgery to correct a range of serious diseases which can be life-threatening if not addressed. A warning, there story contains material some viewers may find distressing. (PANTING) Gee, they've got fair digs!I know, they're very lucky.Believe it or not, this cottage, complete with chimney, is actually a dog kennel. Liz Davidson breeds French bulldogs and her love for them, and the dogs' chalets, not one but three of them, says it all.They're delightful characters, they're a small dog but they have a big dog mentality. Delusions of grandeur as well.They do.They're part of the short-nosed breed of dogs. Boxers, British bulldogs, pugs - all short-nosed, round-faced and extremely popular.

They're just so affectionate.Her curves.I like the mushy faces but their curly tails are very cute too. On the park and on the internet. Snuffling, snorting, bundles of cuteness abound. (SNORING) But what we think is cute could be killing the dogs that we love so much.

much. This is Ozo, right?Yes, he is a 9-month-old French bulldog who has come to see us for his airway problemsWhat's the issue?The issue is for the breeding to have these little guys to have small noses and flat faces. Unfortunately, the result of that is to come press all those upper irways into a small area.Veterinary specialist Dr Phillip Moses says the popularity of this breeding is driving major anatomical change.If you back even a couple of hundred of years, pictures of the pugs are different today from the dogs we see today, even with bulldogs. Over the past couple of hundreds of years, we've compressed them even further.And with that evolutinary change, we are seeing an endemic in abnormalities. There is such compression of the upper airways that these dogs really struggle to breathe.Oxygen deprivation can lead to collapse. Oesophageal issues require some dog owners to feed their dog upright in a chair. It looks like it hurts. Eye problems and spinal defects are common and tragic - because they could be avoided.This is a form of artificial selection, not natural. Breeders are deliberately breeding for the flat face to get the particular lot. In doing that, it's causing major health problems.The RSPCA's Dr Jade Norris says unprecedented demand by dog owners and breeders willing to cater to that demand is ethically corrupt.I would say that upwards of 90% of these dogs do require upper airway surgery to make them more comfortable.So what are thoughts on corrective surgery? I'm hearing that almost all of them need it. Have these guys had it?No, they've not had it, nor do they need it. It is a matter of...But they are puffing a bit. Wouldn't they be more comfortable...Well, no, because they're excited.If you actually get out there and see some of these dogs, maybe go around, see some of the breeders that are trying, they can run their dogs around no sweat. In an effort to educate dog owners and to defend breeders, Dr Karen Hedberg and the Australian Kennel Council released this video.To say it is 10% or less is ludicrous. It really is.Dr Moses along with the Australian Veterinary Association and the RSPCA are calling on breeders to change their ways.We need to consider changing the breed to an animal that's more compatible with a more comfortable existence. How do you do that?Well, by selecting dogs with longer noses. Until such time, this will continue to be a common scene in surgeries. The operation to clear the airways costs around $2,500 but can be much higher if there are complications. Ozos is home and recover -- Ozo is home and recovering well. But had he been bred differently, he may never have required such intervention. Often people say to me, "What sort of dog should I get?" My routine answer is, "Go to the pound. There's plenty of dogs who need a home." You don't need to go to a breeder and spend a fortune.That's the program for tonight. Thanks for your company. Hope to see you again