Arthur Cox is ranked first in a new survey of Irish law firms by British legal journal Global Counsel. The study ranks A&L Goodbody second and William Fry third. McCann FitzGerald and Matheson Ormsby Prentice share fourth place.

The largest Irish firms are appointing consultants and non-lawyers to key posts to secure their growth, it adds. However, clients are urged to assess whether smaller firms should be used when "local connections" are important.

It adds: "Consider whether a mid-sized firm would be more appropriate for the task. There are medium-sized firms in Dublin and regional firms which offer very good services, particularly in the core areas of corporate, employment and commercial, including litigation."

Global Counsel says the market is expanding rapidly and legal firms are keen to project their services as business-orientated.

The study says firms continue to expand and many have been forced to recruit abroad due to the tight market for lawyers.

But fees have not significantly increased since 2000. The market is competitive and clients are urged to negotiate fees.

The survey identifies public-private partnerships proposed in the National Development Plan as an area with good potential for growth.

It says the Copyright Act passed in November 2000 and the Electronic Commerce Act will prompt further expansion and adds that the deregulation of the electricity market is also likely to foster growth.

The firms are rated as the leading, highly recommended or recommended firms in 18 categories.