To ask Her Majesty's Government why Her Majesty's ambassador in Panama required a new residence; what was the cost of the new residence; what was the cost of the opening ceremony for it, including travel; and whether a European Union embassy is being opened in Panama. [HL2487]

In January 2009, the Foreign and Commonwealth Office's Investment Committee approved the purchase of a new residence for our ambassador in Panama. The former residence was no longer fit for purpose and required a major refurbishment, estimated at £l.4 million. The construction of high rise developments in the immediate surrounding area and the planned widening of a highway in front of the property created serious ongoing operational disruption, a loss of privacy and had security implications.

The new residence, which will enable savings on future running costs, was purchased in March 2009 for £2,001,826.

The residence opening ceremony was performed by His Royal Highness The Duke of York, during a pre-planned official visit to Panama, in his capacity as the UK Special Representative for International Trade and Investment. The ceremony was combined with an official reception in honour of His Royal Highness, attended by a wide range of local business, political and key contacts at a total cost of £3,766. Therefore there were no associated travel costs, because His Royal Highness was already in Panama on pre-scheduled UK Trade and Investment business.

We have contacted the European Commission which informs us that it currently has no plan to upgrade the small European Union projects office in Panama.