Bermuda's "official waffling" on term limits for work permits has hit the headlines in the international Press, making front page news in the Risk & Insurance magazine.

It also says the policy could "scupper" the $64 billion insurance industry on the Island and flags Cuba as an alternative island of choice for the future.

The cover, which features a picture of Premier Alex Scott, calls Bermuda a "Roil Haven" (roil means turmoil).

"Government waffling on term limits leaves corporate chieftains wondering how serious Bermuda is about keeping skilled workers and serving its prized insurance companies," says the sub-headline on the front cover.

Inside the article said: "Official waffling on term limits leaves insurance industry executives wondering how serious Bermuda is about keeping workers. If the island lags in supplying the industry with qualified labour, there is always Cuba, once the regime of Fidel Castro passes into history."

The story quotes Michael Morrison, chief executive of Allied World Assurance as saying the issue of "key executives" and how the matter is handled is one on "everyone's minds". Mr. Morrison yesterday said he did not want to comment on the article until after he had seen it.

David Ezekiel, chairman of the Association of Bermuda International Companies, is quoted as saying the matter is of "huge concern" to his members.

James Bryce, head of IPC Re, is quoted as saying: "I think the harsh reality is that we mean a lot to the local economy here and we're very mobile in terms of operations." Mr. Bryce said yesterday his comments were taken out of context.

The article also states that many financial service companies' assets are kept on computer disks and there is "little to stop them leaving when governments make it hard to do business".

In a Press conference earlier this year Government said it would start thrashing out the details of its controversial work permit term limits with business leaders after stressing there would be no change in policy.

Home Affairs Minister Randy Horton stressed Government would do nothing to jeopardise business but it had to ensure it did not create more long-term residents.

The policy began in 2001 and limits work permits in most cases to six year limits. Employers able to justify a genuine and compelling need can get work permit extensions to nine years. Term restrictions do not apply to "key employees" who must have one of seven criteria.

Earlier this year the business community was up in arms about the policy as the 2007 deadline looms nearer for those on work permits or employing people on work permits.

There are currently 8,000 work permits in Bermuda and it is not known how many of these will be allowed to stay past the 2007 deadline. Employers argue that the policy has already cost the Island valuable employees who have either left or decided not to come.

And they say it has led to companies looking elsewhere for new places to locate their business as they see the work permit issue as too difficult to get around.