service panel ground and neutral

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I have a customer with an existing installation.
The sub panel has Pushmatic breakers and the neutrals and grounds are all connected to a common grounded terminal block.
The house inspector (hired by the buyers) says the neutrals must be separated from the grounds.
When I researched this it seems that he is correct, but I do not understand the difference since the ground and the neutral bars will still be connected to the ground bar in the main panel.
Do I need to install a neutral bar and if so why?
 
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