  We present the luminosity function and selection function of 60 micron
galaxies selected from the Imperial IRAS-FSC Redshift Catalogue (IIFSCz). Three
methods, including the 1/Vmax} and the parametric and non-parametric maximum
likelihood estimator, are used and results agree well with each other. A
density evolution proportional to (1+z)^3.4 or a luminosity evolution exp(1.7
t_L / \tau)$ where t_L is the look-back time is detected in the full sample in
the redshift range [0.02, 0.1], consistent with previous analyses. Of the four
infrared subpopulations, cirrus-type galaxies and M82-type starbursts show
similar evolutionary trends, galaxies with significant AGN contributions show
stronger positive evolution and Arp 220-type starbursts exhibit strong negative
evolution. The dominant subpopulation changes from cirrus-type galaxies to
M82-type starbursts at log (L_60 / L_Sun) ~ 10.3.
  In the second half of the paper, we derive the projected two-point spatial
correlation function for galaxies of different infrared template type. The mean
relative bias between cirrus-type galaxies and M82-type starbursts, which
correspond to quiescent galaxies with optically thin interstellar dust and
actively star-forming galaxies respectively, is calculated to be around 1.25.
The relation between current star formation rate (SFR) in star-forming galaxies
and environment is investigated by looking at the the dependence of clustering
on infrared luminosity. We found that M82-type actively star-forming galaxies
show stronger clustering as infrared luminosity / SFR increases. The
correlation between clustering strength and SFR in the local Universe seems to
echo the basic trend seen in star-forming galaxies in the Great Observatories
Origins Deep Survey (GOODS) fields at z ~ 1.
