E.—l.

REPORT.

i. INTRODUCTORY AND GENERAL. Since ī assumed tlie portfolio of Education on the 22nd September, 1931, I have had the unenviable task of effecting reductions in expenditure in almost every branch of the Service. At the outset it is but fair to say that the Government has been very loath indeed to curtail educational facilities, realizing as it does the paramount importance to the people of maintaining a sound education system. The severe financial depression through which this country is passing, in common with most other countries to-day, made it imperative that economies should be effected in all Departments of the State, and it was impossible to avoid reducing expenditure on education. Every care has, however, been taken to effect economies that will have the least harmful effect on the system as a whole. The earnest desire of the Government to maintain the essential parts of the system is evidenced by the fact that, although the National Expenditure Commission felt impelled to recommend some very drastic economies, not all of these were adopted by the Government. The task was rendered more difficult by the fact that no less than 80 per cent, of the total sum of money appropriated annually by Parliament for current expenditure on education is spent on salaries. When this item was excluded there remained, apart from capital expenditure and superannuation subsidy, only about £700,000 on which reductions might be effected. The difficulty of making reductions from this figure can be seen by a comparison of the following large items which are included in the table below :— £ Maintenance of buildings . . . . . . ... 154,995 Conveyance .. .. .. .. .. 84,123 School Committee grants .. .. .. .. 104,001 University grant, scholarships, and bursaries .. 111,564 Allowance to training college students . . . . 121,916 Child-welfare .. .. .. .. .. 123,065 £699,664 Up to the 31st March last the following were the principal economies effected : —

Reduction in Expenditure, 1931-32, as compared with 1929-30.

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f Expenditure, Expenditure, \ „ , ,. 1929-80. 1931-32. j Reduction. I £ £ £ Salaries of Teachers, Instructors, Child-welfare Officers, In- 2,626,628 2,346,943 279,685 spectors of Schools, and departmental officers Subsidies to primary, secondary, and technical schools, and 39,768 2,132 37,636 University colleges Subsidies to public libraries . . . . . . . . 2,998 .. 2,998 Maintenance of buildings .. .. .. .. 154,995 106,480 48,515 Manual instruction .. .. .. .. 90,951 73,156 17,795 Travelling-expenses of Inspectors of Schools, Child-welfare 25,331 18,937 6,394 Officers, &c. Education Boards'administration .. .. .. 39,148 34,633 4,515 National Scholarships .. .. .. .. .. 11,183 9,787 1,396 School and class libraries, &c. .. .. .. .. 2,052 .. 2,052 School Journal—Printing, &c. .. .. 7,001 5,772 1,229 Grants to University of New Zealand and constituent colleges 71,207 53,309 17,898 University Scholarships and Bursaries .. .. .. 26,663 15,648 11,015 Workers'Educational Association .. .. 3,500 3,031 469 Allowances to training college students .. .. .. 121,916 104,341 17,575 Examinations .. .. .. .. .. .. 7,567 3,370 4,197 Maintenance of children in child-welfare institutions.. .. 34,629 31,800 2,829 Material and stores, child-welfare .. .. .. .. 4,982 3,677 1,305 Printing and stationery .. .. .. .. .. 4,887 2,196 2,691 Gramophone records .. .. .. .. .. 3,918 154 3,764 Grants to Teachers'Superannuation Fund .. .. .. 143,000 43,000 100,000 New buildings, additions, &c. .. .. .. .. 443,885 259,932 183^953 Other* .. .. .. .. .. .. 315,569 327,189 -11,620| 4,181,778 3,445,487 736,291 * includes School Committee incidentals, conveyance and board nf pupils, boarding-out of children, &c. f Increase.