We pressed the Department on what it was doing to encourage a greater number of audit firms to carry out audits of local authorities. The Department agreed that maintaining capacity in the market for auditing local authorities was a serious matter.61 It reported that it kept a close watch on the audit firms supplying the market for auditing local authorities, to monitor the situation and ensure that audit firms provided the necessary capacity.62 It added that it was in regular dialogue and meetings with the audit firms.63 The Department felt that, in taking the actions which Sir Tony Redmond had recommended in his review, this would provide the confidence that the market needed, and to ensure that there was sufficient capacity.64