Labour leader Brendan Howlin warned against reversing plans for the October budget in the aftermath of the UK referendum.

He said it was too early to gauge the economic impact, but he would urge caution about moving to amend budgetary plans.

“We simply do not yet know what the impact will be,’’ he said.

He said there should be no race to fundamentally alter plans for the budget, believed by the fiscal council to be contractionary next year, in the hope that having further contraction would provide greater shelter.

He said housing policy needed stimulus, not contraction, and wages were slowly recovering from the most catastrophic economic shock experienced as a nation.

“We can afford, and absolutely need, an expansionary budget,’’ he added.

Mr Howlin recalled he had said on Friday the vote of the British people was a tragedy. “That seems no less a tragedy to me today,’’ he said.

He said the EU had served as an arena where the relationships between the Republic and its sister islands had improved immeasurably.

Equal status

He said the EU had allowed the Republic, for the first time in its history, to address and deal with the UK as an equal and not as a former colonial master.

Mr Howlin said the Republic wanted its trading relationship with the UK, including Northern Ireland, not only to survive, as it had done, but to grow and thrive further.

He said there seemed now to be an urgency on the part of some EU countries to proceed with the exit process immediately. He would urge caution, he said, given the Republic was the EU member state with most at stake.

Sinn Féin leader Gerry Adams repeated his call for a referendum on Irish unity.

He said the Government must work to promote the interests of the whole of Ireland and the North in particular in future talks at an EU level. Mr Adams said the DUP must also respect the Remain vote.

“The majority of citizens in the North, including many unionists, rejected its exit policy,’’ he added. “The DUP must accept this.’’