The former Progressive Labour Party Government was told that its controversial term limit policy was harming Bermuda’s business reputation and was totally unnecessary as early as 2006 — but chose to ignore the advice because it was not “politically expedient” to reverse a policy it had trumpeted, it has been claimed.Home Affairs Minister Michael Fahy made the allegation following a Senate debate on the Ministry of Home Affairs budget on Friday.Emphasising Government’s position that the now-axed term limit policy — which limited the length of time that a guest worker can stay on the Island to six years — failed to protect Bermudian jobs, Sen Fahy said that legislators were close to preparing a declaration of understanding for guest workers to sign.The declaration, which acknowledges that guest workers do not have rights of permanent residency in Bermuda, was originally drafted and submitted to Government seven years ago, Sen Fahy revealed.“The declaration was provided by a very prominent QC as long ago as 2006,” Sen Fahy said. “That advice was reviewed by a number of local attorneys who agreed that the advice was sound.”Expanding on his comments last night, Sen Fahy said that the report — which was not commissioned by the former Government but was nevertheless presented to it — put forward an airtight legal argument as to why the policy was completely redundant.“When we came to office we reviewed various files on term limits and found legal opinions submitted to the last Government,” Sen Fahy said.“What these legal opinions said, unequivocally, was that there was simply no need for the term limit policy.“I think the last Government got themselves into difficulties because, when it was discovered that term limits were not required to protect jobs, the chose to ignore it because it wasn’t politically expedient. That was negligent.“At the time the economy was going down and all the statistical analysis was that companies were not setting up in Bermuda and that part of the reason for that was term limits.“And when you have advice — valid legal opinions from overseas lawyers that have been corroborated by very good local lawyers — stating that term limits are simply not required and that they do not protect jobs — then to ignore that advice is negligent.”The Royal Gazette understands that legal opinions calling for the policy to be scrapped were further submitted to Government in 2007 and 2008 — and even approved by the then-Attorney General.The PLP introduced the policy in 2001, imposing a six-year limit on most work permits as a means of curbing the long-term residency claims of guest workers who could end up staying on the Island for years.But it was continually denounced by business leaders who claimed that it would deter international firms from setting up on the Island.Despite the criticism, the PLP always maintained that the policy was justified.Speaking just before becoming Premier in October 2010, Paula Cox, who as the PLP’s first Labour and Home Affairs Minister was responsible for introducing the law, told a Rotary Club gathering: “Remember, I’m the Minister who introduced term limits — I don’t anticipate any change”, adding that the policy was “firm but fair”.The new One Bermuda Alliance scrapped the policy almost as soon as it came into office — despite a pre-election pledge to review the policy for up to two years.Last night Sen Fahy once again defended that move — and said the former Government should have acted much sooner.“When you have a file containing all this legal advice, all these opinions, all saying the same thing — that Term Limits were not working and were not necessary — it doesn’t take a rocket scientist,” Sen Fahy said.“But it was a file that was seen to be ignored by the last Government.”Yesterday The Royal Gazette e-mailed the Progressive Labour Party asking for comment on Sen Fahy’s remarks. No response was received by press time last night.