Cairns restaurant Helga’s Pancake House ‘stressed’ with red tape costs

The paperwork cost of running a business in Queensland has almost doubled in three years as one long-term Far North operator reveals plans to cease trading due to “red tape stress”.

The Mexican pancake dish at Helga's Pancake House. PICTURE: BRENDAN RADKE

A Far North business owner is considering closing due to “red tape stress”, as administrative costs across the state double in just three years.

Helga’s Pancake House owner Birgit Machnitzke says she spends as much time in the books as she does operating her hospitality business after first opening in 2015.

Silkwood Hotel owners Cassie and Paul Grover review an acoustic report they will be submitting to the Office of Liquor and Gaming Regulation in order to host live music exceeding 75 decibels. Picture: Arun Singh Mann

“Soon, nothing will be left to enjoy without paying for permission from the all-seeing government,” Ms Machnitzke said.

“These new regulations are squeezing small businesses, while big corporations easily comply with their vast resources. Our vibrant local live music culture is being strangled by red tape.”

Ms Machnitzke said the increase new regulations each year were an “unfair” cost to impose on business.

“You start a business and look at what the regulations and the costs are and make a plan, and there are certain regulations that will cost you, then that’s part of it.

“But it’s unfair if the rules keep changing on you and you have to pay for it.

Helga's Pancake House owner Birgit Machnitzke is fearing the close of her business due to red tape stress. Picture: Brendan Radke

“I get there needs to be updates, new research comes out or an improvement is made. But to keep red tape at par, if you’re truly making an improvement and bring a new rule in, then you should get rid of an old one.”

Ms Machnitzke said the mountain of administrative work was ever growing, referencing an Institute of Public Affairs report which noted there were 370,000 regulations imposed on individuals and businesses in 2023, compared to 200,000 in 2005.

The Business Chamber of Queensland’s Efficient Regulation Report 2023 found the median administrative costs for a “common Queensland business” had increased from $25,000 in 2021 to $50,000 in 2023.

Ms Machnitzke said the latest “tedious” example was the renewal of her Food Safety Supervisor certificate.

Helga's Pancake House on Spence St. PICTURE: ANNA ROGERS

“You do that course, it takes you a while and then you know it all. You did that course once, and then you were good.

“This year, it’s changed to every five years.

“You see new regulations always coming in and think – what’s wrong with the ones we had a year ago. Has there been any issues?

“Bureaucrats bring in policies, they dictate. Public servants are there to serve us, not dictate to us.”

With her lease set to expire in about 18 months, Ms Machnitzke said while her business “doing well” she was seriously considering closing due to “red tape stress”.

Cairns Chamber of Commerce chief executive Patricia O’Neill said ongoing changes to industrial relations were “dragging staff away from their core business” and causing a loss of productivity.

“Not to say any of the new regulations are wrong, but take for example the right to switch off, businesses need to generate a policy for that, engage HR services, there’s costs to all this,” Ms O’Neill said.

“There’s all these new regulations being set in, without the financial support to create policies, train staff or implement them.”

Originally published as Cairns restaurant Helga’s Pancake House ‘stressed’ with red tape costs