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removal of Mana Island light to Cape Egmont. The latter will have to await the completion of the light on The Brothers, and the acquiring of a suitable site; hut the land being Native property requires further action to be taken by my colleague the Native Minister. As even with the present number of lighthouses considerable inconvenience has been caused at times tbrough the services of the " Luna " not being available for the use of the Marine Department, and as both during and after the erection of the proposed lighthouses it will be absolutely necessary to have a steamer for the sole use of the Marine Department, an order has been sent to England for a steamer suitable for use as a lighthouse tender, and also for lifting buoys and moorings. In connection with the claims of the shipping community for the erection of additional lighthouses, I may point out that the light dues for the past financial year amounted to £10,241 19s. 6d., whilst the cost of maintaining the lights only amounted to £5,767 4s. 9d., thus showing a profit of £4,474 14s. 9d. The profit during the previous financial year was £3,989 Is. 9d. From the Ist of July, 1866, to the 30th June last, the revenue derivable from light dues has exceeded the working expenditure by £18,847 13s. 6d. The returns of trade and shipping, and the tables attached to the Marine Eeport, now laid on the Table of the House, show the largely increasing trade of the colony; and whilst we are entitled to congratulate ourselves on such an increase, I think that it will be admitted that I am justified, on behalf of the shipping interest, in asking you to provide liberally for the further erection of lighthouses. The Government do not propose to reduce the dues, but rather to use any surplus, from time to time, towards increasing the number of lighthouses along the coast. Training Schools. —The Naval Training Schools Act, which was passed last Session, has enabled the Government to establish a school at Kohimarama, near Auckland, in very suitable buildings belonging to the Melanesian Trust, together with the schooner " Southern Cross," as a training ship. I proceeded to Auckland last September with this object in view, and while there I was fortunate enough to secure the services of Lieut. Tilly, E.N., who has devoted a great deal of his time to the starting of the institution, and has rendered me most valuable assistance. Mainly through his instrumentality I secured the services of Lieut. Breton, E.N., to take charge of the institution. In April last I again paid a flying visit to Auckland, and was highly gratified to find that the selection of Captain Breton had been a most fortunate one. He has his heart in the work, and I have no doubt that the institution will prove a great success under his management. I found the boys well disciplined, happy, and proud of their occupation. They also showed considerable proficiency in working the " Southern Cross " during our short trip, doing everything themselves, even to steering the vessel; I found them also well trained in pulling in boats; while their nautical training had been attended to they had not been neglected in other respects; they were receiving a liberal education, and were also being taught the art of swimming. It is now generally admitted in the United Kingdom that, in order to secure a sufficient supply of seamen for the mercantile marine, the Government must give every encouragement to the maintenance of training ships and their tenders; and, situated as we are, being also dependent on the sea as our great highway, we cannot do better than follow the example of the mother country. Storm Signals and Weather Reporting. —Some fifteen months ago the Government initiated a new branch of the Marine Department, for the purpose of obtaining reliable reports as to the state of weather in the various parts of the colony, in order that, from examination of these observations, which are forwarded by telegraph to a central office, forecasts of the weather may be made, and, by a system of storm signals, masters of vessels may be prepared for approaching bad weather. This work has been confided to Commander Edwin, E.N., who, I am glad to say, has shown a great amount of skill, zeal, and energy in carrying out my wishes to secure this boon to the colony. Arrangements have been made by which Captain Johnson, in addition to his other duties in the Marine Department, is associated with Captain Edwin in this branch of the service, so as to insure that