New Premier Alex Scott has softened Government's hard-line over work permit term limits.

Former Home Affairs Minister Terry Lister had said he wanted to see even "key" employees barred from staying in Bermuda for more than nine years.

This would mean that heads of companies, chief financial officers, actuaries, bankers and lawyers on work permits would have to leave the island by 2010 - and companies find replacements for these "key" employees.

However this weekend Mr. Scott pointed out it was possible for people to stay beyond the nine-year limit under the present regulations and he stressed Government was keen to work with business.

Chairman of the Association Bermuda International Companies David Ezekiel said it was a case of "wait and see" with the new Government but he warned if Bermuda's reputation as being friendly to international business changed then companies would ship out.

He said: "It is heartening to see the new Premier has taken his time to look at business priorities.

"At the moment nobody is going to be jumping ship but everyone has to make contingency plans."

The term-limit policy was brought in to inhibit creating long-term residents of work permit holders who number 8,000 and who have around 4,000 dependents.

Mr. Ezekiel said Government needed to look at whether mixing the issue of work permits and long term residents was wise.

He said it would be impossible for business to attract talent on a time-limit.

Mr. Ezekiel said he hoped meetings would be set up with Government and within four to eight weeks it would be possible to gauge where Government was going with the policy.

Mr. Scott said the nine-year limit on work permits for foreign workers was the result of wide ranging consultation with international business community but there could always be exceptions.

He told The Royal Gazette: "I put a high priority on the businesses we have and keeping the corporate citizens that are with us.

"If there are concerns being expressed within the international business community, we will take those concerns on board as we go forward.

"Recognising our status as a premier jurisdiction for international business, the Bermuda Government is committed to ensuring that businesses can operate in Bermuda without excessive regulation, but any freedoms provided to those businesses will always have to be balanced against the interests of the people of Bermuda.

"This Government will continue to work with all of the stakeholders in an effort to ensure that the way forward is mutually beneficial to Bermudians and our International Business community.

"There is much to be done (by Mr. Scott's new cabinet). However, I can assure you that the new Cabinet and particularly the new Minister of Labour, Home Affairs and Public Safety will be up to speed very quickly and this issue will be one of the priorities of the Government.

"We're conservative and have kept our financial house in order."

And Assistant Chief Immigration Officer Rozy Azhar said: "The policy on term limits was formulated to give companies the latitude to ensure that companies maintain their key staff at all levels in order that they can continue to prosper in Bermuda.

"Application can be made for key staff to be exempt from term limits. Key staff include staff whose skills are difficult to recruit both in Bermuda and worldwide e.g. actuaries, underwriters and accountants."

"The Minister of Labour, Home Affairs and Public Safety has given this issue top priority. We are presently meeting with a subcommittee of the International Business Forum which includes top executives of the Insurance industry to discuss the implementation of this policy.

"At present this committee is collecting questions and concerns from their members that we will then sit down as a group and develop responses.

"We will continue to work closely with this committee to implement this policy in a way that will not endanger the success of individual businesses and our economy."