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The expenditure on Native schools for the year has been as follows :— £ s. d. Village school salaries (1,240 in average attendance) ... 7,932 7 11 Boarding schools (199 children) ... ... ... ... 3,728 6 10 School requisities and contingencies ... ... ... 1,224 6 3 Buildings and furniture ... ... ... ... 1,908 19 9 Inspection (including travelling) ... ... ... ... 877 7 0 Office salaries and clerical assistance ... ... ... 156 7 4 Apprenticeship and maintenance of sons of chiefs ... ... 1,070 12 3 £16,898 7 4 The department is greatly indebted to some of the Government officers in Native districts, and particularly to Mr. 11. W. Brabant, Mr. B. S. Bush, Mr. J. S. Clendon, Mr. J. 11. Greenw*ay, Mr. G. Kelly, Major Mair, Capt. Porter, Capt. Preece, Mr. A. P. Batcliffe, Mr. S. C. E. Vickers, and Mr. S. Yon Stiirmer, Avhose local influence and knowledge of Native affairs have enabled them to render very valuable services as District Superintendents or in other capacities.

No. 2. REPORT OF THE ORGANIZING INSPECTOR. Sir,— Wellington, 30th June, 1881. I have the honour to forward my Report on the Native Schools of New Zealand for the year 1880-81. It is as follows :— I have now visited all the Maori schools once, and nearly all of them twice. The numher, including ten small schools that have heen given up since I "first visited them, is 75, namely, 66 village schools and 9 boarding schools. In this enumeration the subsidised school at Kawhia is not included : it had practically ceased to exist before the period to which the report relates. The number of schools now under my inspection is 64. Of these 57 are village schools, conducted under the superintendence of the department, two of them being merely subsidised schools ; and seven are boarding schools belonging to religious bodies or private individuals. Besides the schools there is a boarding-house at Tauranga, for boys that have attended village schools in the Bay of Plenty District, and are now pupils at the Tauranga Public School. The village schools are distributed over New Zealand in the following way:—In North Auckland, 27; Hot Lake District, 5 ; Bay of Plenty, 7; East Coast, 5 ; Marlborough, 2; Canterbury, 4; Otago,. 3; Southland and Islands, 4. The boarding-schools are located as follows: Bay of Islands, 1; Auckland, 2; Hawke's Bay, 4. Since the beginning of the year 1880 the schools at Waiomio, Orakei, Kaihu, Pakia, Karakariki, Kawhia, Taupiri, Kawakawa, Arahura, and Oromahoe have been closed in accordance with the Code (xvii., 3), which provides that work at a Native school may be suspended when the average attendance falls below fifteen. New schools have been opened at Motukaraka, Omanaia, Waitetuna, and Koraka (Colac Bay), the Natives having provided suitable sites, and satisfied the department that good average attendances would bo maintained. Schools have also been opened at Te Kao (Parengarenga), and Fort Galatea. New schools are about to be established or old schools to be reopened at Whangape, Te Teko, Maungatapu, Pakowhai, and Kaikohe, and probably at , Mangamuka, Ruataniwha, and Ramoto. Motukaraka is in the district of Hokianga; it is about three miles from Herd's Point, and on the opposite side of the harbour. The attendance at this school will not be large, but it will probably be very regular. A master that has been successful in a South Island Native school has been transferred to Motukaraka. Omanaia is also in Hokianga ; it is near the head of a tidal river that flows into the harbour. It is six or seven miles from Herd's Point. There should be a good attendance at this school, which has been placed between two considerable Native settlements. Waitetuna is in the Raglan district, and about twelve miles from Whatawhata. Mrs. Hooper, formerly teacher at Karakariki, is doing what may be called outpost work here. The school is held in the Native church, and the teacher with her family lives in a Maori whare that has been put up for her. I visited the school at the beginning of the year, and found about thirty children in regular attendance, with the prospect of a considerable increase. There is every reason to believe that new and permanent buildings will be required here. The school at Colac Bay, in the far south, has been opened lately. This is at present purely a Native school; it is probable, however, that in a short time a certain number of European children will attend. A school in this locality was much needed. A subsidy has been granted to a school at Te Kao, Parengarenga Harbour, near North Cape. There are many Native children here, but circumstances hardly warrant the establishment of a fully-equipped school just at present. School buildings are about to be erected at Kaikohe in the very important Maori district that lies between Hokianga and the Bay of Islands. At least 60 children should attend this school.

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