MHKs have accepted the decision by unelected MLCs to throw out one of their proposals for new charity rules.

But some criticised the government for allowing a bill’s scrutiny to start in the upper chamber, rather than with the elected House of Keys.

The Legislative Council rejected a House of Keys proposal to exempt small charities from new regulations, throwing out an amendment that was approved by MHKs.

That amendment was made to the Charities Registration and Regulation Bill. Despite warnings against from Policy and Reform Minister Chris Thomas, MHKs voted to exempt charities with an income below £5,000 from the need to be on the new register.

As the Bill was first introduced to parliamentary scrutiny in the Legislative Council, the amendments made by MHKs needed to go back to the upper chamber for acceptance. MLCs threw out that change, highlighting concerns that small charities could not choose to be on the register even if they qualified for an exemption.

Lawrie Hooper (LibVannin, Ramsey) had brought in the exemption amendment, which MHKs had supported, but on Tuesday he grudgingly acknowledged that the best option now would be to accept the MLCs’ verdict and await a promised consultation ahead of further laws that would deal with exemptions.

He voiced concern at the role of the Legislative Council in the matter.

’I don’t believe it is the place of unelected members to determine policy,’ he said.

He expressed disappointment that the Legislative Council, rather than rejecting his amendment, had not made further amendments to deal with issues such as concern about giving smaller charities the option to stay on the register. If consideration of the bill had started in the Keys, it would have enabled MHKs to add further amendments to address concerns.

Bill Shimmins (Middle, pictured) agreed.

’What a muddle,’ he said. ’It does not reflect well on those promoting this legislation.’

The changes brought in by the House of Keys had caused concern among some small charities, Policy and Reform Minister Chris Thomas said.

The bill aims to modernise the register of Manx charities and increase the amount of information that will need to be submitted by organisations.

But some were concerned the new requirements would be too onerous on small charities.

Those in charge of the bill had warned against the unintended consequences of Mr Hooper’s amendment, under which charities with an income of under £5,000 would have been exempted from the need to register.

As well as the fluctuations in income which could cause some charities to yo-yo on and off the bill on a yearly basis, they said small charities would miss out on a ’reputational benefit’ to being on the register.

Additionally, Mr Thomas said that income alone did not take into account the assets that a charity might hold.