EU threat to close capital assay office

Under plans drawn up in Brussels, the European Union wants to replace the present system of third-party hallmarking with self-certification.

The move is being pushed by the Italian government, which takes over the presidency of the EU in July this year.

Allowing firms to self-certificate their products would "almost inevitably" lead to the closure of the 500-year-old Edinburgh assay office with the loss of up to 35 jobs and would have serious consequences for the jewellery and tourist trades.

The draft directive would also see the famous Scottish hallmarks - the Lion Rampant and the Edinburgh Castle mark - replaced by an EU-wide symbol similar to the kite-mark. The other British hallmarks, the Birmingham anchor, the Sheffield rose and the London leopard’s head, would also disappear.

Scott Walter, the assay master, at the Edinburgh office, says the UK system makes it compulsory for all precious metals to be verified by an independent assayer.

The hallmark tells the consumer who made the piece, what the precious metal content is and where it was tested and hallmarked.

The adoption of the Italian system would give manufacturers the option of self-marking or going voluntarily to an assay office. The draft directive also insists on a universal EU hallmark so there would be no bias for the consumer between a self-certified hallmark and one branded by an independent assay office.

Italy is the largest jewellery manufacturer in Europe but operates no independent system of hallmarking. With nine of the ten accession countries joining the EU in 2004 operating an independent system, the Italian government sees the adoption of the forthcoming presidency as the final chance to push through the proposals.

According to the four British assay offices - Edinburgh, London, Sheffield and Birmingham - any diluting of the regulations would result in under-carated jewellery being sold throughout the UK. In addition it would pass on the responsibility for verification from the manufacturers to trading standards - at an estimated cost to the taxpayer of up to 5 million a year.

Mr Walter said the changes posed "a serious threat" to third party hallmarking in Britain. He contrasted the existing UK system which has been shown to prevent 50,000 substandard articles reaching the market each year with the laissez faire practices in the United States.

A recent series of spot checks in one US state found 63 per cent of products were under carat, said Mr Walter. The assay master claims the Edinburgh Castle mark has a particular resonance for consumers and is highly desired by tourists. He said "The Castle mark is very significant for us in Scotland. It is a local mark which gives added interest to the product for the consumer."

Any closure of the assay office would also have severe consequences for the jewellery trade in Scotland. At the moment the assay office gives any surplus profit to the Incorporation of Goldsmiths of the City of Edinburgh which uses the proceeds to fund training at Scottish Art Colleges in jewellery work.

Labour MP Mark Lazarowicz, whose Edinburgh North and Leith consituency includes the assay office, said any watering down of the hallmarking system would have serious consequences for the Scottish jewellery industry.

"The Scottish hallmark is a valuable asset to Scottish trade and tourism and a move to the voluntary system could lead to this hallmark disappearing from use," said the MP, who has tabled a number of questions to the Trade and Industry Department on the issue.