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There is an impression abroad that it is of no use attending the Technical School unless students are prepared to submit themselves for examination. This statement is injurious to the school. It is entirely at the students' option whether they present themselves or not. The first grade is for primary schools only. The second and higher grade examinations, and those of South Kensington and the City and Guilds of London Institute, are held solely on behalf of teachers and trade students, who require to hold certificates. It is a great advantage to be enabled to hold examinations under the two latter bodies, for their certificates are recognised and accepted by -any body or society throughout the world. The number of papers examined during the year was 7,748. The number of certificates issued was 4,964. The number of certificates issued in all grades since the school was established in 1886 is 38,065, subdivided as follows : Primary or first grade, 31,050 ; intermediate or second grade, 3,670; higher or third grade, 1,320; South Kensington, 1,923; and City and Guilds of London, 102. The second grade (local) examinations resulted as follows: Freehand (203 candidates), 124 passed; gsometry (78 candidates), 23 passed; perspective (47 candidates), 20 passed; model (159 candidates), 120 passed; memory, blackboard (49 candidates), 26 passed (13 excellent, 17 good). Outside districts, 189 papers: 100 passes. Number of individual candidates examined, 348 ; passed, 231. Examinations. — Science and Art Department, South Kensington. In connection with the National Competition, Florence Broome obtained a National bronze medal for still life and two National book prizes for design. These were the highest colonial awards. Art Class Teachers' Certificates. —The following have this year completed this certificate: Elsie Napier-Bell, Mary E. Young. Elementary Drawing Certificate, First Class. —Mary Sladden has obtained the full certificate. Second Grade Art (Freehand, Model, Perspective, Light and Shade, Geometry).—Number of papers taken, 157 ; passed, 137. Third Grade Art (Outline from Cast, Light and Shade from Cast, Drawing from Models, Design, Still Life, Antique, Principles of Ornament, Drawing from Life). —Number of papers submitted, 59 ; passed, 47. Science (Plane and solid geometry, machine construction, building construction, steam, human physiology).—Number of papers submitted, 26 ; passed, 19. Examinations. — City and Guilds of London Institute. The examinations under this department have been conducted as usual. The number of papers examined was 37; passed, 18. The subjects taken were plumbing (theory, practice and preliminary), mechanical engineering (ordinary), telegraphy and telephony, electric lighting (preliminary, ordinary, and honours), carpentry and joinery (ordinary and honours). Free Studentships. In accordance with the arrangement entered into with the Wellington Industrial Association, free studentships were given in plumbing, machine construction, building construction, carpentry, and art. They are tenable for a period of two years, subject to the usual conditions of regular attendance and satisfactory progress. The following six free studentships offered by the Board of Education were also awarded after competition: Wood carving, art (evening), art (day), art (afternoon), machine construction, building construction. The studentships were keenly contested, and I anticipate very beneficial results from all sections of the work. Every possible advantage will be afforded to free students in all sections of study applicable to their particular work. Prize List. Prizes were given in the various classes as follows: Day classes, for the best progress (Dr. Martin); evening drawing class, for the best progress (Technical School); students in connection with the building trade, for the best general progress, advanced and elementary sections ; mechanical students, for the best progress in first year's work; also, in the advanced section (Technical School); for the best set of subject sketches (Messrs. Windsor and Newton) ; the best set of still-life studies (Messrs. Windsor and Newton); the best set of designs, advanced (A. de B. Brandon, Esq.); the best set of designs, elementary (Messrs. McGregor Wright and Co.) ; the best set of memory-draw-ings (Technical School); teachers' classes, for the best progress (Messrs. Whitcombe and Tombs, Limited) ; primary scholarship holders, for the best progress, two (Technical School); wood carving, evening classes, best progress (Technical School) ; boys' manual instruction classes, best progress (Technical School); shorthand, best progress (Technical School); best series plant-form studies (Technical School) ; competition work, two (Student's prize) ; mathematical class, best progress (Technical School) ; carpentry class, best progress (Technical School). . • Library. The library now consists of 534 volumes upon technical, science, and art subjects. Over 114 volumes have been circulated amongst the students in connection with their special requirements and trades. Additions to the Technical School. . During the latter portion of 1897, I made a suggestion to the Wellington Industrial Association, that the surplus of the Exhibition to the extent of £1,500 should be devoted towards an