8.—6

XXXI

CAEE OF THE FEEBLE-MINDED AND EPILEPTIC. It seems to be desirable that at an early date the provision for the care and education of feeble-minded and epileptic boys and girls should be made as complete as possible. Inquiries have shown that the number of feeble-minded and epileptic children in the Dominion is too large for the accommodation that can be provided at Otekaike. It is accordingly proposed to reserve that institution entirely for boys, and to make provision for the girls at Richmond, near Nelson, on the premises originally bought for this purpose, but hitherto used as a home for imbecile boys, who are to be transferred shortly to Tokanui. It will be necessary to erect extra cottage homes and other buildings both at Otekaike and Richmond. MEDICAL INSPECTION OF SCHOOL-CHILDREN. Pour medical officers have been appointed to begin, in conjunction with the teachers, the work of the medical inspection of school-children. It is necessary, especially at first, to keep clearly in mind the distinction between medical inspection and medical treatment. It is not proposed to touch the latter, at all events at present. But it is expected that the time of the medical inspectors will be fully occupied in the work of medical and dental inspection, and ultimately in training the teachers to take their part in the scheme. The system is to be supervised by the Health Department in co-operation with the Education Department. Every effort will be used to rrake the system of school inspection, which is one of the most important parts of the field of preventive medicine, as complete as possible. SCHOOL BUILDINGS: NEW SCHOOLS. When a country like New Zealand is in course of being settled it becomes necessary in the initial stages to set up a much larger number of small schools than in an older country where population is denser and there are better roads. The additional initial cost thus incurred and the greater cost of maintenance and working are properly part of the cost of settlement: this fact has, perhaps, never been fully recognized in New Zealand. Settlement is proceeding rapidly, especially in the North Island, and it must accordingly be expected that for some time to come the expenditure on new school buildings will continue to increase. As settlement proceeds and good roads become available it would appear to be good policy to replace some of the smaller schools by central schools more adequately fitted for the important work of education. ESTIMATES OF EEVENUE AND EXPENDITUEE, 1912-13. I anticipate that the revenue for 1912-13 will be £10,948,404, made up as follows : — £ Customs .. .. .. .. 3,200,000 Railways .. .. .. .. 3,745,000 Stamps .. .. .. .. 898,800 Post and telegraph .. .. .. 1,141,000 Land-tax .. .. .. .. 650,000 Income-tax .. .. , .. .. 450,000 Beer duty .. .. .. .. 119,000 Registration .. .. ~ .. 95,165 Marine .. .. .. .. 47,000 Miscellaneous .. .. .. .. 369,530 Territorial revenue (£240,000, less land-sales, 1911-12, £66,505) .. .. .. 173,495 National endowment revenue .. .. 59,414 £10,948,404 The estimate of land-tax revenue is based on the rates of taxation as provided by the existing law. If the rates of taxation are amended as indicated, later on a further sum will have to be added to the revenue from this source.