Canadian Lawyer InHouse

37 CANADIANLAWYERMAG.COM/INHOUSE NOVEMBER/DECEMBER 2018 able to build it today," he says of the railway. "The national interest card hasn't been played and it should be," says Southam, not- ing that the federal government is not using the powers it has to push forward important energy infrastructure projects. Moreover, some lawyers report that cli - ents are now starting to ask questions about Canada's appetite for foreign investment given some of the political upheaval. Seidel says, "I get a lot of questions from people outside of Canada who ask what is go - ing on. I didn't get those questions before." Southam notes that foreign investors have largely shunned Alberta's oilpatch. "There's a real concern about the ability to get larger projects done." Duffy adds that a rise in political risk has drawbacks that inhouse lawyers need to consider. He notes the greater the risk the higher the reward, so expect interest charges to creep up if financiers think there is more political risk in projects, as govern - ments and policy direction changes. As well, he says, lawyers should be vet- ting their infrastructure contracts to en- sure they have clauses to protect them from discriminatory action if a new government comes in and changes the law. He says if a government "effects a change that has im - pact on the economics of a project," compa- nies need to be protected. As well, he says, inhouse lawyers need to make sure that they are structuring their deals with partners properly so that they can take advantage of trade treaties, such as NAFTA (assuming it is still in place), which can provide companies some protection from legislative action and allow them to claim damages. Price-hedging strategies to account for things such as steel tariffs is also important, lawyers note. Probably the biggest area that in-house legal departments need to make sure their company is focused on is government rela - tions, which is increasingly falling under the reporting lines of general counsel. Fasken's Brock says "it's about understand- ing and analyzing policies that affect your project. It's important to have people who un- derstand those processes and policies." He says it's not just at the political level, but there are three legs to the govern- ment relations stool. There is the executive branch, comprising ministers who make decisions, the legislative branch, which in- cludes all the elected officials from the dif- ferent parties, and the civil service. "You want to have one approach that takes into consideration all three. "The motivations and the interests of those three audiences are going to be distinctive." Most importantly, Brock says, don't ig - nore the bureaucrats. The "civil service has a considerable amount of influence on where the government can go and can be important in effecting what a government wants to do." IH I n d u s t r y S p o t l i g h t For In-house Counsel...Legal News at Your Fingertips Sign up for the Canadian Legal Newswire InHouse edition today for free and enjoy great content from the publishers of Canadian Lawyer, Law Times, Canadian Lawyer InHouse and Lexpert. THE LATEST NEWS Keep abreast of essential late-breaking legal news and developments. THE BEST COMMENTARY Access trusted analysis and opinion on the cases and changes that are shaping the legal landscape. DELIVERED WEEKLY Your profession can change quickly, which is why you need the freshest, most recent information. FOR READING ON ANY DEVICE Get the news and opinions you need on any device. Whether you read at work, or on the go, the newswire adapts to your screen. Visit www.canadianlawyermag.com/newswire-subscribe Untitled-5 1 2018-10-23 2:28 PM

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