The newly merged Pricewaterhouse-Coopers is the top fee earning accountancy practice in the Republic, generating £65 million in the last year.

KPMG occupies the number two slot, earning £52 million, in the year to June last, according to a survey by Finance magazine. It says that among the 22 firms with fee income of more than £1 million, the average rate of growth last year was 18 per cent.

The growth rate matches the highest previously recorded rise which occurred in 1989-1990. "The managing partners of the largest firms all agree that things have never been better and that their firms are benefiting from the strong economic performance of their clients," the survey says.

It finds that the level and quality of service which the firms offer continues to be the main "battleground" for winning new clients and retaining existing ones.

Year on year Grant Thornton recorded the highest growth rate at 57 per cent. It is the seventh largest practice and its fee income was £9 million in the year to June 30th.

Arthur Andersen has the third highest fee income with £30 million, up from £24.5 million last year. Ernst & Young has seen its fee income rise by £2.7 million and it now occupies fourth place. Deloitte & Touche generated £29.3 million in fee income, up from £25.5 million and it is the fifth biggest income earner. BDO Simpson Xavier saw its income rise by 18 per cent to £14.5 million to take sixth place. Accountants are also reporting a tight market for staff at all levels. The survey found that accountancy salaries are set to rise by 10 per cent over the next 12 months.