  We apply a spherical harmonic analysis to the Point Source Redshift Survey
(PSCz), to compute the real-space galaxy power spectrum and the degree of
redshift distortion caused by peculiar velocities. We employ new parameter
eigenvector and hierarchical data compression techniques, allowing a much
larger number of harmonic modes to be included, and correspondingly smaller
error bars. Using 4644 harmonic modes, compressed to 2278, we find that the
IRAS redshift-space distortion parameter is $\beta = 0.39 \pm 0.12$ and the
amplitude of galaxy clustering on a scale of $k=0.1 \Mpch$ is $\Delta_{\rm
gal}(0.1)=0.42 \pm 0.02$. Combining these we find the amplitude of mass
perturbations is $\Delta_m(0.1)=(0.16\pm0.04) \Omega_m^{-0.6}$. A preliminary
model fitting analysis combining the PSCz amplitudes with the CMB and abundance
of clusters yields the cosmological matter density parameter $\Omega_m=0.16\pm
0.03$, the amplitude of primordial perturbations $Q=(8.4\pm 3.8) \times
10^{-5}$, and the IRAS bias parameter $b=0.84\pm 0.28$.
