News in yesterday's Royal Gazette that talks are ongoing about a possible relaxation in the six-year term limit rules is welcome.

This policy, as well intentioned as it was, has damaged Bermuda's reputation as an international business centre.

Now, with offshore financial centres under threat from regulators and tax authorities, with business formations down due to the global economic downturn and because Bermuda is already known for high costs, it is critical that the Island do everything it can to maintain its reputation as a leading domicile.

One way of doing that now is to relax the term limit regime. The point here is not that the overall aim of the policy – to avoid getting into the situation of having long term residents with no rights again – was ill advised.

Nor is it the point that the Department of Immigration and successive Cabinet Ministers have not been flexible in terms of granting waivers and extensions.

The point is that Bermuda, given the current economic crisis, needs to put the welcome mat out to international businesses and those guest workers they may require in Bermuda to be successful.

That is more necessary now than it ever was given that the Cayman Islands are relaxing their term limit policy and is looking at other means of attracting business to its shores.

Bermuda cannot afford to be complacent.

At the same time, it would be helpful for a review to be done on the efficacy of the policy. Did it discourage long term residency? Was it a factor in businesses not establishing themselves here? Did it encourage outsourcing by local and international companies? These are questions that deserve answers and enough time has passed to determine whether the policy was a success or not.

But, in terms of perception alone, the policy needs to be relaxed, at least for the duration of the current downturn.