The decision to exempt senior executives of companies that meet a range of good corporate citizen criteria have been welcomed, which is not a surprise. They show Government recognises that the current Immigration regime is hurting Bermuda’s economy.And the conditions attached to hiring Bermudians at different levels of the company are understandable; Government has an obligation to protect Bermudians and to help them to advance, especially in a recession where many Bermudians are out of work.Having said that, this policy, and some of the other variations on it that have been announced and put through in recent months, only nibble at the real problem, which is the six-year term limit policy.It is worth noting that the term limit policy was never intended to replace the work permit policy. Its intention, which was reasonable, was to avoid having large numbers of people live on the Island for decades and then, with some justice, seek permanent residence and the rights that go with it. Even a person granted a term limit waiver can still be replaced by a qualified Bermudian.There will be arguments back and forth about the policy’s efficacy and the reasonably large number of exemptions and extensions that have been granted. Now is not the time to repeat them. The reality is that the policy acts as a disincentive to businesses to establish themselves in Bermuda and to retain Bermuda as their primary domicile.Worse, it is a disincentive to the leaders of the businesses to remain in Bermuda when they perceive they have an uncertain future on the Island. This is important because their presence in Bermuda results in the creation of well paid, responsible, skilled jobs which benefit the whole economy. It is this physical presence that makes the economy grow, and in turn encourages other businesses to come to the Island, thus creating a genuine market and business centre.In turn, this creates a demand for the businesses that service them for everything from IT and accounting services to cleaners and caterers, all of which creates opportunities for Bermudians. To be sure, the Bermuda market faces plenty of challenges, on taxes, costs and competition, from other jurisdictions.And Bermuda needs to take care that it is not exposed to a downturn in single core industries. The need to diversify is genuine. But there is no doubt that the term limits policy which also hurts local companies and government’s refusal to freeze it or abolish it, has become a symbol of Bermuda’s inability to adjust to changing circumstances.All the other welcome changes made since Premier Paula Cox came to office will be for nought unless it is changed.