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In conclusion, I must express the opinion that the Board has not made out such a case as the tone of your first letter would lead one to expect. That delays occur in these matters is evident, but that the Department is even chiefly to blame has not been shown. The Department has to protect the public purse, and there are indications from many parts of the colony that Boards will apply to the Government for grants in cases to which they would not give the slightest consideration if they themselves had to find the money. I have, &c, The Chairman, Education Board, Auckland. Albebt Pitt. Manual and Technical Instruction. —The report of the Director of Technical Education presents a full and comprehensive statement of what has been accomplished during the year. The boys and girls of Standards V., VI., and VII. in eighteen of the town and suburban schools have received regular and efficient instruction in woodwork and cookery respectively, and the headmasters of those schools have cheerfully co-operated in assisting to carry out the arrangements made by the Director for such instruction. Thirty-nine schools have carried on instruction in handwork, and in fourteen schools (under the sole charge of male teachers) provision has been made for the instruction of girls in needlework. A large number of teachers have availed themselves of the Saturday classes in woodwork and cookery, some of them having to travel long distances weekly in order to do so. Arrangements will be made this year for the instruction of teachers and pupil-teachers in art and science. Miscellaneous.—The Board regrets that no provision has yet been made by Parliament for the superannuation of teachers. The problem of providing for the retirement of those whose age and infirmity unfit them for the work of teaching is a difficult one, but the interests of education demand that it should be faced with the least possible delay. The Board is glad to know that there is a prospect of an early establishment of a training college for teachers, and the proposals of the Department herein are generally approved. The thanks of the Board are due to the Department for its generous dealing in the matter of the adjustment of teachers' salaries, to the Auckland members of Parliament for their co-operation in obtaining a more liberal grant for the maintenance of school buildings, to the officers of the Public Health Department for much valuable help and advice in matters of school sanitation, and to the School Committees throughout the district for their cordial support and assistance in the administration of school affairs during the year. I have, &c, The Rt. Hon. the Minister of Education. Richard Hobbs, Chairman.

General Statement of Receipts and Expenditure for the Year ending 31st December, 1903.

Beceipts. £ s. d. Balance at beginning of year .. .. 3,376 6 0 Grants from Government for— Teachers' and pupil-teachers' salaries, and allowances to pupil-teachers .. 85,954 10 1 Reserves revenue for primary education 2,934 7 6 Capitation at lis. 3d. and grant of £250 13,998 15 2 Capitation for relieving-teachers .. 611 1 6 Drill-instruction .. .. .. 70 0 0 Receipts from other sources— Truancy fines .. .. .. 36 4 3 Commission on Government Insurance premiums collected .. .. 14 8 3 Refunds, &c. .. .. .. 6 6 4 Grants from Government for— Scholarships .. .. .. 1,909 1 9 District high fchools .. .. 1,137 5 0 Reserves revenue for secondary education 100 0 0 District high school fees .. .. , 210 0 Grants from Government for manual and technical instruction — Capitation on attendance .. .. 661 4 9 Material forclass work .. .. 35 2 3 Receipts from other sources — Pees, £639 lis. ; voluntary contributions, £42 13s. lid. ; sales, £80 os. 3d. .. .. 762 5 2 Grants from Government for— Maintenance of school buildings, etc. .. 9,725 0 0 House allowances .. .. .. 2,798 19 0 Special grants for new schools, &c. .. 2,943 1 0 Special grants for technical - school buildings, &c, rent (two years), Technical School, &c. .. ".. .. 4,038 15 11 Receipts from other sources Sales from store, rents, sales of sites, buildings .. 193 16 3 Other receipts— Auckland Summer School fees .. 5 10 0 Sales of supplies from store .. .. 016 9 £131,333 16 11 31st March, 1904.

Expenditure. £ s. d. Staff salaries and clerical assistance .. 4,025 2 8 Office contingencies .. .. .. 1,834 19 3 Teachers' and pupil-teachers' salaries and pupil-teachers'allowances .. .. 89,198 13 2 Relieving-teachers' salaries .. .. 724 4 0 Training of teachers .. .. .. 150 4 9 Drill-instruction .. .. .. 86 13 4 Conveyance of school-children .. .. 19 10 0 Incidental expenses of schools .. .. 6,494 4 3 Audit of school fund accounts .. .. 30 0 0 Truant Officer .. .. .. 199 15 9 Scholarships and expenses of examination 1.905 18 9 Salaries of staffs of district high schools, paid out of special receipts for such schools .. .. .. .. 1,471 3 0 Apparatus for schools .. .. .. 96 5 10 Manual and technical instruction — Instructors'salaries and expenses .. 1,432 18 5 School classes .. .. .. 276 16 10 Special classes .. .. .. 313 12 Office salaries .. .. .. 576 10 0 Maintenance of school buildings, rebuilding, &c. .. .. .. .. 6,294 1 3 House allowances .. .. .. 2,794 15 8 New school buildings, additions, &c. .. 6,312 15 1 Buildings, &c, for manual and technical purposes— School classes .. .. .. 3,521 2 1 Special classes .. .. .. 1,770 17 9 Other expenses— Auckland Summer School .. .. 140 0 0 Purchase of supplies for store .. 20 15 5 Balance at end of year .. .. 1,593 8 0 £131,333 16 11 Richard Hobbs, Chairman. Vincent E. Rice, Secretary.