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In order to enable keepers at isolated stations, which are not within reach of the ordinary public schools, to have their children educated, the Department has erected buildings for schools at these places, and Education Boards have made grants towards providing teachers. The schools have been of great advantage to keepers; but the Department has experienced during the last two or three years a good deal of difficulty in arranging to place keepers with children of school age at all the stations where they are situated. This is owing to many of the more recent keepers being single men, and others who are married having small families. During the year seven keepers have resigned, five have been retired-—1 on account of age, and four on account of bad health —1 has died, and 1 has been transferred to the Head Office. To fill the vacancies and to provide keepers for the new lighthouse at Kahurangi Point 17 new appointments have been made. The automatic fog-signal at Pencarrow Head is now fired every five minutes instead of every fifteen minutes as formerly. This change was made in consequence of it being found that the fifteen-minute intervals were too long, as steamers making the harbour had time to run into danger between the explosions. A similar, but improved signal, has been ordered from England for erection at Taiaroa Head, at the entrance to Otago Harbour. Owing to the improvements and to the additional cost of material, &c, the cost of this signal in England will be £440, as against £250 paid for that at Pencarrow. Captain Bollons, of the s.s. " Hinemoa," has continued to carry out the work of inspection of the lighthouses. The amount of light dues collected during the year was £29,116 os. lid., as compared with £26,596 10s. during the previous year. Harbours. —The officers at the ports under the control of the Department have performed their duties satisfactorily, and the buoys and beacons have been properly attended to. Most of the work of overhauling and cleaning the buoys and their moorings has been done by the "Hinemoa" during her periodical trips round the colony. Two leading beacons have been erected at Kawhia, and arrangements have been made with a local resident to exhibit i t s on them when vessels are expected, and when they leave at night. This is a great convenience to shipping, as it enables steamers to work the port at night. The subsidy of £340 a year, which was for some years paid to the Northern Union Steamboat Company for overhauling and cleaning buoys, and doing other harbour-work at Kaipara, has been discontinued, and the " Hinemoa " is now attending to the buoys, and the Harbourmaster has been supplied with an oil-launch to enable him to get about the harbour and to attend to the small buoys which may require attention between the " Hinemoa's visits. The channel at this port having shifted, the old leading-beacons do not lead vessels through it, and new beacons should therefore be erected as soon as possible. Owing to the haze and the distance of the bar from the signal-station it has been found that vessels outside are often unable to make out flag-signals shown on the flagstaff, and it has therefore been decided to use the arms of the flagstaff in different positions to make the principal signals that are necessary. A notice setting forth the signals that will be so made will shortly be gazetted, and circulated for the information of mariners. Information as to the change in the channel, &c, has been supplied to the Hydrographer to the Admiralty, in order that the necessary alterations may be made in the Admiralty chart of the harbour. The Harbourmaster at Manukau has been supplied with an oil-launch, which he finds of great assistance, both in the performance of his harbour duties, and in looking after the oyster-beds in the harbour. During a heavy flood on the 19th March last, the iron beacons marking the channel to Haveiock were carried away, and a contract has been let to replace them. Meantime the channel is marked with temporary buoys. Harbour-improvement works for which grants have been made by the Department are being carried out at Motueka, Collingwood, and Wairau. Snagging of a channel leading to a new settlement has been done at Karamea, and some harbour-improvement work has been carried out at Okarito. Captain A. Seabury, Harbourmaster at Foxton, and Mr. J. Bodgers, Pilot and Signalman at Wairau, have retired. Both these officers came into the service of the Department on the abolition of the provinces on the Ist November, 1876, having been previously in the service of the Provincial Governments. They have discharged their duties to the satisfaction of the Department. Age and ill-health were the causes of their retirement. Captains J. B. Hall and H. Fisk have been appointed to fill the positions vacated by them respectively. The sum of £1,914 15s. sd. has been collected for pilotage and port charges in respect of harbours under the control of this Department, as against £1,711 14s. 6d. collected during the previous year. A return showing the harbour-works authorised by the Governor in Council and the licenses issued for the occupation of foreshore is appended hereto. Fisheries. —The markets have been very well supplied with fish during the year. The principal trawling is stili done from Napier, but recently a company has decided to undertake fishing in the colony, and it is understood that it intends to use trawlers in parts of the colony where they can be profitably employed. Some important alterations were made in the law relating to the fisheries by an Act passed last session. The Act provides that all sea-fishing and oyster boats are to be licensed annually, the license fee to be 10s. for boats of 5 tons register and upwards, and ss. for boats under 5 tons, half fees to be payable in the case of boats licensed after the 30th June. Begulations as to the licensing, numbering, and marking of the boats have been made, and will come into operation on the Ist July next. The Act also provides that owners of licensed boats and fish-curers are to make returns to the Department of all fish caught and cured by them respectively. These returns and the licensing of the boats will enable the Department to keep statistics pf the quantity and value of the fish taken and of the boats engaged in the fishing industry, which