Michael Noonan: Brexit impact has been 'within anticipated limits'

Finance Minister Michael Noonan and his department have said the Brexit impact has been within anticipated limits.

The department said that, notwithstanding the heavy losses suffered on the financial markets since the result was announced early on Friday, contingency plans both in London and across Europe had factored in such losses.

Mr Noonan, speaking at the national economic dialogue event in Dublin yesterday, said nothing has happened since Friday to impact on the budget for next year, which he will announce in October alongside Public Expenditure and Reform Minister Paschal Donohoe.

“From an Irish point of view, the initial shock has been contained. There is no sense of panic. The NTMA are happy they can fund the country for the foreseeable future,” said Mr Noonan.

He said the fluctuations seen on the markets were within the normal rise and fall of markets and people were still going about their business, which is welcome.

He said it was difficult to know what the ultimate impact of Brexit will be so it would be some time before we know what cost will have to be borne by the Irish people.

Kieran McQuinn of the ESRI said Brexit has already had an impact on Ireland. It has compounded some global issues which already had begun to impact on Ireland, he said.

Labour said the Government needed to publish a revised summer economic statement following the UK’s decision to leave the EU. The economic outlook for the rest of 2016 and 2017 was published last Tuesday.

Public Expenditure and Reform Minister Paschal Donohoe

Former ministers Joan Burton and Brendan Howlin say some of the figures used to formulate Ireland’s economic outlook for the remainder of the year came from correspondence with the EU in April. Ms Burton also said the summer statement didn’t take into account the impact of Brexit.

For its part, the Department of Finance has been actively preparing for the outcome of the referendum and has been liaising closely with the Central Bank and NTMA to ensure financial and economic stability can be maintained.

It had commissioned the ESRI to undertake an analysis of the potential economic implications of a UK vote to leave the EU. The analysis was published last November.

The department has also undertaken extensive consultations with industry stakeholders on the risks and opportunities relating to the financial services sector.