IRELAND has fallen from, third to sixth place in Europe for investment by US companies.

A survey carried out by the international accounting and consulting firm, Deloitte and Touche, examining foreign investment by US companies in 1995, found that Sweden, Germany and France had climbed past Ireland in the European rankings.

Britain and Italy also received more US investment in 1995 than did Ireland. In 1994 Ireland came third after these two countries.

Globally Ireland was the ninth most popular destination for US manufacturing companies investing abroad.

"Direct foreign investment by US companies into Ireland far outweighs our size relative to other countries," according to the Deloitte & Touche.

Ireland was classified as a low wage country for the, purposes of the survey, and came third in that category after Brazil and Mexico, Sweden, Brazil and Britain the top three countries, together accounted for 38 per cent of the total US investment in 199 (Sweden's Pharmacia was involved in a £4.4 billion merger with Upjohn).

High wage countries, mostly in Europe, received 76 per cent of the investment.

"On the surface, access to low labour costs in order to gain competitive advantage is seen as a key reason for multi national companies to invest abroad," said Mr John Pittock, of Deloitte and Touche. "But the evidence of the survey suggests that this is not the case".

"Access to large, prosperous markets, such as the EU the capability of meeting worldwide standards; access to quality supplies of parts, components and supporting services; and a well developed infrastructure are seen as important components of competitive advantage.

Although Ireland is often classed as a low wage country it, as many advantages over its low labour cost competitors," Mr. Pittock said. "Its workforce is highly skilled and readily available, it has an excellent and improving physican telecommunications infrastructure and it has generous incentives for investors.

"To a certain extent, Ireland can offer the best of both worlds," he said.

US multi nationals more than doubled their foreign direct investments abroad in 1995, to $97 billion (£60.6 billion).

The top 10 recipients of US investment were: Sweden, Brazil, Britain, Italy, Germany, France, Mexico, Japan, Ireland and the Netherlands.

The top five European destinations were Sweden, Britain, Italy, Germany and France.