Butcher John Barr wanted to be legally approved as a wholesale food producer a year before his cooked meats were blamed as the major source of a deadly food poisoning outbreak.

If his business had been registered, there would have been a system for his products to be clearly labelled and recalled from sale if they posed a health risk.

But the fatal accident inquiry into the deaths of 21 people from E-coli 0157 heard yesterday that, although one environmental health officer told Mr Barr to register, another later gave him a letter exempting him from registration under the Meat Producers (Hygiene) Regulations, 1994.

North Lanarkshire Council environmental health officer Gordon Jorgensen, 37, said that, while working for the former Motherwell District, he told Mr Barr in November 1995 that he should be a registered wholesaler under the regulations.

Mr Jorgensen said Mr Barr was made aware that this would have meant his products had to be labelled and a system of recalling products had to be in place.

Depute fiscal Ian McCann asked: ''Is it within your knowledge that, following a subsequent visit by another officer, Mr Barr was given a letter exempting him from these regulations?'' Mr Jorgensen: ''I believe that is so.''

He said that ''a superior'' of his made the decision to allow Mr Barr to be exempt from registering, because Mr Barr had made no mention that he supplied cold meats to wholesale outlets.

Mr Jorgensen was shown a report compiled after E-coli contaminated products were found in the premises in Caledonian Road, Wishaw, in November 1996. It revealed 40 possible points relating to cross-contamination.

Solicitor Paul Santoni, representing relatives of E-coli victims, asked why such potential risks had not been picked up on previous routine hygiene inspections.

Mr Jorgensen said a normal walk-round hygiene inspection lasted two hours and would be unlikely to throw up as much detail as a two-day investigation.

The inquiry, in Motherwell, continues.