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ships were awarded to Maurice Gaudy, Alice Cornish, and Charles M. Benzoni, those three having obtained the next highest number of marks. Buildings. —The prominent items of expenditure on account of school buildings are as follows : Mangatainoko, new school and master's residence, £500 19s. lid.; Hastwell, new school (grant in aid), £56 17s. 6d.; Clareville, repairs, £147 10s. 6d. (the flooring and roofing needed this expenditure); Dalefield^ new residence, £132 7s. Bd.; Park Vale, additional class-room, £207 17s. 4d.; Greytowu, repairs and additions to school and residence, £607 os. 3d. (the old buildings were quite unfit for use, and have been to a large extent rebuilt; considerable additional accommodation was absolutely necessary, these being the oldest buildings in the Wairarapa); Waihenga, additional class-room, £216 7s. lid. ; Feathorston, repairs, £70 2s. 2d.; Mungaroa, additions, £54 75.; Upper Hutt, additions, £57 125.; Taita, remodelling of residence and repairs to school, necessary on account of the removal of part of the building which had for many years had to do duty as part of the residence, £126 10s.; Shannon, grant in aid of new school, £65 7s. 3d. ; Levin, grant in aid of new school, £49 18s.; Manakau, completion of old schoolroom, and additional class-room, £240 14s. lOd.; Paraparamu, site for school, £91 6s. 9d.; Pahautanui, removal of old buildings and erection of new class-room, £200 35.; Ohariu, re-roofing and repairs, £50 18s. 6(1. ; Johnsonville, new class-room, £266 6.8. ;Te Aro, repairs and painting, £126 6s. ; Mount Cook Girls', do., £140 ss. 6d.; Mount Cook Boys', do., £77 16s. 2d,; Mount Cook Infants', do., £69 125.; Clyde Quay, balance of contract for erection of school building, £295 7s. 7d.; Yogeltown, additional class-room, £224 Bs. 6d.; Newtown, balance of contract for infant school and division of large front room, £195 16s. lOd. ; Kilbirnie, additional class-room, £198 2s. lOd. The exceedingly small sum allocated to this Board for school buildings will not admit of any provision being made towards the erection of a suitable building on the Ghuznee Street site. The present building was erected in 1848, and is absolutely unlit for the purpose of a school: it is probably the worst building in the whole colony in which the public-school work is carried on. This Board labours under the greatest difficulties with regard to the education of the children within the city, no less than £341 ss. being annually expended in rents, and contingent liabilities for the purchase of the lands on which two of the principal schools are erected, amounting to £4,500. In no other district in the colony has an Education Board to take from the teachers' salaries to meet expenditure for rents of schoolrooms, while here the annual drain for that service amounts to over £400. The claims of new localities in the shape of special settlements in the Forty-mile Bush and along the Manawatu Eailway line have to be dealt with in the most niggardly manner—one by one and year by year —even though the Board is thoroughly satisfied that the erection of suitable buildings in the centres of well-defined settlement is both economical and advisable. Yet with the modest amount available the Board is quite powerless to adequately face the question. There can be no reasonable doubt that the erection of suitable schools in new settlements is the means of assisting to an immense extent the general growth and stability of such settlements. What settler will now be found prepared to set to work in earnest in a new part of the country, when by the removal of his family and the immediate erection of his new home he deprives his children of their education, at least so far as regards the higher standards, or postpones it to a time when their services can ill be spared, and their minds are less able to absorb the instruction given ? The Board hopes that, when the next distribution of building grant takes place, due regard will be had to the bond fide wants of each district, and a desire shown to place each district on an even footing. It is submitted that, as things now exist, the allocation of this grant on the basis of population is not an equitable one. Finance. —By the strictest economy in all departments, the maintenance overdraft has now been removed. The year's work has quite borne out the anticipations formed when the new regulations as to teaching power and payments of salaries were adopted, and all salaries reduced. Inspection.—The time has now come when assistance must be provided under this heading. Mr. Leo can no longer undertake the examination of the whole of the children now presented, and have any time available for inspection. During the past year 10,460 children, in seventy-two schools, were examined. The annual report of the Inspector, attached hereto [see paper E.-Ib] , contains the fullest information. School of Design.—The attached report of Mr. Eiley shows clearly the growing interest taken in drawing in its several branches. The results of the competition at South Kensington are extremely gratifying, as shown by the number of passes made and prizes obtained, and the high standard of excellence shown in the whole of the work submitted. The Board has every hope that at a comparatively early date the great drawbacks under which this institution has suffered will be removed, and new commodious premises, of a suitable description, provided. If the Parliament will grant the requisite authority, it is believed that an exchange of sites can be effected, and the new offices for the Board and premises for the School of Design erected on a portion of the reserve set aside for public buildings in Victoria Street. Should the Bill to be introduced early in the coming session fail to pass, the Board will at once proceed with the erection of the building in accordance with the plans prepared by its architect, Mr. Turnbull, on the sections in Ballanoe Street already vested in the Board. I have, &0., «T. .R. Blair, Chairman.

Eepoet on the School of Design. Gentlemen, — 25th February, 1890. I have the honour to submit my annual report upon the School of Design, its branches, and drawing in the primary schools of this education district. Primary School Insteuction. —Considerable~progress has been made during the year in this important subject. lam glad to report that the interest has considerably increased, and consequently decided improvement is apparent. In the infant schools and in some of the lower standards modelling in clay has been introduced, and will prove invaluable in future training. I attach great