5

E.—4

The following figures show the expenditure in. connection with Government and private industrial schools during the year: — Expenditure on Government Industrial Schools, 1917-18. £ Salaries .. .. .. .. .. .. .. .. 15.087 General maintenance .. .. .. .. .. .. 24.483 Travelling-expenses .. .. .. .. .. .. 1,752 Furnishings, repairs to buildings, small works .. .. .. 2,250 New buildings and works .. .. .. .. .. .. 2,999 Payments to foster-parents .. .. .. .. .. .. 28,790 Gross cost . . .. .. .. .. .. 75,907 Recoveries from parents and others .. .. .. .. £25,200 Sales, &o. .. .. .. . . .. . . I ,003 20.809 Warnings of past inmates paid to Public Account .. .. 5,934 32,803 Net cost of institutions . . . . . . . . . . 43, 101 Salaries, &c, of visiting and probation officers and sundries .. .. 2,415 £45,579 Expenditure on Private Industrial Schools. Gross cost .. .. .. .. .. . . .. 2.970 Recoveries .. .. .. .. .. .. .. 1,835 Net cost .. .. .. .. .. .. £1,141 Included in the total sum recovered (£26,869) is an amount of £10,897 paid by Hospital and Charitable Aid Boards for the maintenance of 954 children committed to industrial schools on account of indigency. In addition 141 inmates of private industrial schools were maintained at the expense of Hospital and Charitable Aid Boards. As these latter schools make their claims direct against the Boards, the figures are not included in this report. Section 50 of the Industrial Schools Act provides for the placing of inmates of industrial schools in situations and for part of their earnings to be placed in trust accounts in the Post Office Savings-bank. There are some two thousand such trust accounts, representing about £50,000. Though these earnings cannot be claimed as a right, in practice they are generally paid over to the persons concerned who, after passing out of the control of the schools, are able to give evidence of good character, provided that satisfactory investments for the money are shown. The Boarding-out System. The system of boarding out young children from industrial schools has been in operation in New Zealand for the past thirty-five years. As part of the recent reforms the Department has extended the boarding-out system considerably : the rate of payment has been increased from Bs. to 10s. a week ; the list of clothing supplied as an initial outfit has been altogether revised, providing for better material and more of a standard so far as fit and style are concerned ; and provision has been made for more frequent inspection of the foster-homes and the children by departmental officers. The detailed reports of the honorary lady visitors, the Department's Visiting Officers, and the teachers of the various schools that these children attend are a striking proof of the success of the boarding-out system and of its superiority when compared with the barrack or institution system that is still followed by the many private and religious organizations interested in child-welfare in New Zealand. A perusal of the official, reports and literature respecting the child-welfare systems in other countries shows that the preference for the boarding-out system in dealing with neglected and dependent children is practically world-wide. Indeed, so overwhelming is the evidence in this direction that the respective merits of the two systems have almost ceased to be a matter for controversy.