E.—l.

For the past three years facilities have been given to teachers to attend classes for instruction in drill, the Department paying rail fares. In September, 1902, announcement was made by advertisement of the Department's desire to obtain the services of qualified men for instruction of teachers in military drill at classes to be established in twenty-five of the larger centres of population, and by this means arrangements were subsequently made in almost all Education Districts, and in some districts at several centres, to establish these classes. The expenditure for the year was £3,754 6s. 2d., made up as follows:— Salary of Commanding Officer, Ist November, 1901, to £ a. d. £ s. d. 31st December, 1902 ... ... ... ... 350 0 0 Salaries of clerk and storeman ... ... ... 120 0 0 Travelling-expenses of Commanding Officer ... ... 49 8 7 519 8 7 Arms, accoutrements, ammunition, &c. ... ... 2,486 1 7 Less recoveries ... ... ... ... 5666 2,429 15 1 Travelling-expenses of cadets ... ... ... 0 18 0 Contingencies ... ... ... ... ... 13 10 3 2,444 3 4 Advertising for services of Instructors ... ... 30 9 0 Eailway fares of Instructors ... ... ... 22 0 1 Eailway fares of Teachers attending instruction-classes 738 5 2 790 14 3 Total ... £3,754 6 2 Eailway Passes, etc., foe School-childeen. In 1902 £3,250, made up as follows, was paid for conveyance of schoolchildren, viz.:—Eailway fares of pupils attending public schools, £1,860; of pupils attending private schools, £938 10s.; of pupils attending district high schools, £121 10s.; and of pupils attending secondary schools, £262 10s.: total, £3,182 10s. Grant to Otago Education Board for conveyance of children by road, £67 10s. Total, £3,250. Chatham Islands. In the Chatham Islands during 1902 there were altogether five teachers engaged in giving instruction. The principal school, Te One, was under a master and mistress. An assistant had the charge of two small half-time schools in the south part of the main island, and instruction was given at four centres in the north by an itinerant teacher. The other teacher had charge of a small school of ten on Pitt Island. The total number on the roll of the schools at the end of 1902 was 100. The average attendance was 85 - 25. This shows a satisfactory increase on the previous year's average —70. The total expenditure was £542 13s. lid., made up as follows:—Salaries and allowances of teachers, £395 9s. 3d.; school furniture, requisites, &c, £100 18s. Id.; passage-money of teachers and families, £11 10s.; inspection, £34 16s. 7d. Prior to 1902, these schools were all classed as Native schools, and were conducted under the regulations of the Native School Code. A change has now taken place and the schools are classed as public schools ; the subjects of instruction are those of the public schools, and the teachers, with the exception of the head-teacher of Te One, are paid at colonial-scale rates. It is proposed to place all these teachers upon the same basis at the end of this year. Considerable interest in educational matters is still maintained by the people of the Islands. The attendance at the principal school, Te One, increased in 1902 so as to warrant the appointment of a mistress. Upon her resignation, two of the girls who had passed Standard VI. at the school were appointed pupilteachers. This arrangement promises success, and may possibly diminish the difficulty experienced in obtaining competent teachers for these isolated places.

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