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There can be no doubt that the success of the work is mainly owing to the thorough grounding given in the primary and elementary work, the value of which is now being felt throughout the entire district. The whole work, from primary to secondary and thence to the higher and individual trade branches, being controlled by one centre gives undoubted advantages, which other centres lack. With reference to the technical classes, it is disappointing to find the employers, with the exception of the Ironfounders , and the Builders' Association, who contribute to the prize fund on behalf of their respective trades, do not sufficiently interest themselves in the matter of this education, for undoubtedly they reap the greater advantage. The success of the movement would, I believe, be almost doubled if the employers would show that they valued it, and would take a practical interest in the work of the school in connection with their employes. I hope sincerely that ere long they (the employers) will awake to the enormous importance to themselves, their workmen, and the colony, of the advantages of technical work, for it is undoubtedly a strong step towards commercial prosperity. Finance. —The cost of the school to the Board has, by the most rigid economy, been considerably reduced, and is now practically a profit to the Board to the extent of £165. The total expenditure for the year is £1,761 165., receipts £1,163 155., leaving a balance of £598 Is.; as against which there is £115 6s. 6d. due from the City Council and the Education Department, but this sum had not been paid to our credit before the 31st of December; deducting this amount, the balance is £482 14s. 6d. actual cost to the Board. The following items are chargeable against this sum : — £ s. d. Instruction to 104 teachers at 15s. per quarter ... ... ... 312 0 0 60 scholarship-holders at 10s. per quarter ... 120 0 0 ~ 21 teachers at evening classes at 7s. 6d. per quarter 31 10 0 Cost of primary examinations... ... ... ... ... 110 0 0 Inspection of schools and correspondence class work ... ... 75 0 0 Leaving a credit balance of £165 16s. £648 10 0 The year has been an exceptionally hard one, owing to the large increase of duties in all departments. As will be seen by the summaries, there were 7,982 works examined during the year, an increase of 1,292 upon the previous year, and in one quarter there were 579 students at work in over twenty-three distinct sections. The work of the school has fully doubled itself in the past five years. My thanks are due to all those whom I have named, and who have so generously contributed to the successful year's working, either by loans or contributions of prizes, books, periodicals, or appliances; to Messrs. J. Fulton, C.E., F. de J. Clere, J. M. Madden, T. Fleming, 8.A., LL.B., who acted as honorary examiners ; to the supervisors; and to my staff, of whom, for their energy and very sincere interest in the welfare of the school, I cannot speak too highly; and to the Board's committee for the careful consideration given to matters affecting the school's welfare. I have, &c, The Chairman, Wellington Education Board. Arthur D. Eiley, Director.

4. SCHOOL OF AET AND DESIGN, DUNBDIN.—EEPOET OF THE PEINCIPAL. Sib,— I have the honour to submit my annual report on the School of Art and Design for the year 1895. At the beginning of the session important additions were made to the teaching staff—Signor Nerli was appointed visiting master for art; F. M. Payne, for machine construction and drawing; and D. Sheriff for building construction. This assignment of duties has worked well, and the organization is becoming more complete. With the exception of a slight change which was made about the middle of the session, the arrangement of the different classes is the same as previously reported. Owing to the crowded state of the painting and life class-rooms, it was found necessary to make two divisions of each clas3. This change enabled the students to study under more favourable conditions as to light and room, and the teacher had more time to devote to personal instruction. The total number of students who received instruction during the past year was 360, showing an increase of thirty-seven since last year. This total includes 111 students and pupil-teachers, eighteen students in training, ninety-seven students who attended the day classes, 134 students who attended the evening classes. Though the total number of students attending the evening classes has increased, the number in the mechanical classes is still comparatively small, there being only thirty-one students therein out of the total of 134 enrolled. It is to be hoped that the liberality of the Board in establishing art classes bearing directly on industrial pursuits, and therefore specially helpful to artisans, will speedily meet with its reward in a large accession to the number of students in attendance at these classes. The success of our students at the recent science and art examinations, details of which are given below, and the work of the machine and building construction classes shown at our last exhibition, will, I feel confident, cause an influx of students to these classes.