‘Red flags’ were raised in Tynwald about the accounts of the charitable company that runs the closure-threatened Family Library.

Directors have announced Family Library Ltd will cease trading on July 31. A fund-raising campaign has been launched to try to save the facility and its allied services.

As we reported recently, more than £10,000 had been paid in fees to one of the charity’s directors.

In a motion to Tynwald, Douglas East MHK Joney Faragher called on the Council of Ministers to take urgent steps to prevent the closure of the Family Library, and to develop a sustainable funding proposal to secure its long-term future.

She described it as ‘a love letter to an institution that’s supported so many lives including mine.’

Kate Lord Brennan (Glenfaba and Peel) said there had been a ‘stella political play’ by the directors, and the government and Tynwald members have been put in a ‘really tricky situation’.

Questions need to be asked of the directors, she said, adding: ‘There are clearly concerns at where some money has gone.’

‘It’s got red flags all over it,’ she said. ‘It is possible that this needs to be potentially referred under the charities regulation side of things.’

Julie Edge (Onchan) said one of the things that ‘really did jumped out at me’ looking at the accounts was that the directors are listed as receiving payments in 2022 but not listed at receiving anything in the 2023 summary. ‘However, when you look at the text for the financial statements they have received funding,’ she said.

She also queried the payment of staff private health insurance. ‘Does every charity have this line in their reporting accounts? she asked. There’s been no fund-raising going forward, she pointed out.

Treasury Minister Dr Alex Allinson said he had been ‘surprised, shocked and saddened’ by the directors’ decision to cease trading on July 31.

He said the charity had received government support of £100,000 in 2017 and then a further £138,500 in 2019-20.

A five-year funding scheme was agreed in 2022 and £330,000 of taxpayers’ cash had already paid out, with a further £80,000 due to be paid in August and £65,000 promised for next year.

Dr Allinson said Treasury had asked for an urgent meeting with directors and had asked for a copy of accounts for the year ending July 31 last year and the management accounts from August to date.

But they had been told it wasn’t possible to provide them until the end of the month.

He tabled an amendment calling on the CoMin to urgently work with the Family and Mobile Library to understand its financial and operational position and bring forward options to the October Tynwald for securing the service.

‘We are moving at pace to assess the situation,’ he said.

He said the hope was that a new structure could be created with new directors or trustees which could continue the service throughout a transition period.

The motion as amended was carried with only one MHK voting against.