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The association has now secured suitable premises on a tenure which justifies the expenditure of money in the way of fitting them up so as to meet the wants of the classes for some years to come. In order to enable it to enter into binding arrangements, your Committee took the necessary steps in June last to have the association incorporated under the provisions of " The Religious, Charitable, and Education Trusts Board Incorporation Act, 1884." A sub-committee was appointed to wait upon the trustees of the Kaitangata Relief Fund and ascertain on what terms the building we now occupy could be secured. The result of these negotiations is that the premises have been leased for a period of five years at a rental of £80 per annum, with the option of purchasing the freehold and all the buildings on it at the close or during the currency of the lease for the sum of £2,500. To assist in this desirable object, the Otago Education Board generously undertook to contribute the sum of £75 per annum for five years. As very considerable alterations had to be made to adapt the building to the requirements of a technical school, the Committee, in September last, called for tenders for this work, and accepted the lowest, which was that of Messrs. Torrance and Simpson, for £605. The work has been completed to the entire satisfaction of the Committee. There still remains to be done the work of furnishing the rooms for teaching purposes, and it is estimated that this will require a further expenditure of £500. Owing to these heavy demands on its funds, the Committee has not yet been able to fit up the electrical laboratory, as was originally intended ; the work must therefore stand over for the present. A considerable amount of correspondence has been carried on during the year with other technical associations in the colony, with the view of conjointly bringing before the Government the need which exists for an increased rate of subsidy. The new Technical Education Bill introduced by the Premier towards the close of the parliamentary session led to the hope that these recommendations would be given effect to, but the subsequent withdrawal of the Bill leaves matters where they were. So inadequate is the provision granted under present arrangements that associations in a less stable position than our own find it almost impossible to resume operations at the present time. On the 23rd June the members of the Committee, together with Messrs. M. J. S. Mackenzie and J. A. Millar, M.H.R.s, waited upon the Hon. Mr. Walker, Minister for Education, during his visit to Dunedin, to urge the claims of the association for a special grant in aid of their new school. The deputation was very cordially received, and the Minister undertook to forward the views of the deputation as far as possible, and try to get a sum of £1,000 placed on the estimates for the purpose. As a matter of fact, a very large sum was put on the estimates for the purpose of aiding technical schools, but, as the vote was conditional on the passing of the Bill referred to, and as the Bill was withdrawn, your Committee is not aware whether any special sum was voted at all. During the past session—as the report of the honorary secretary (read at the closing meeting on the 15th October) shows —classes were held in twenty subjects, and the number of students enrolled was 701, a great increase on all preceding years. Of these, seven applied for and obtained either partial or complete remission of their fees. Two students gained the senior diploma of the association, six the junior, and 170 obtained certificates qualifying for diplomas in various subjects. The balance-sheet shows that the total receipts for the year, including a balance from last year of £422 Is. 7d., amount to £1,322 45., and the expenditure to £1,190 Is. 6d., leaving a balance to the credit of the association of £132 2s. 6d. In addition to this, there are outstanding liabilities amounting to about £300.

Statement of Eeceipts and Expenditube for the Year ending 31st January, 1898. Receipts. £ s. d. Expenditure. £ s. d. To Balance, 31st January, 1897 .. .. 422 1 7 By Salaries .. .. .. .. 501 2 2 Class fees .. .. .. .. 427 13 3 Printing, stationery, and advertising .. 42 2 8 Subscriptions.. .. ... .. 70 13 0 Rent, taxes, and insurance .. .. 133 1 6 Hire of typewriters .. .. .. 9 0 0 Gas and coal .. .. .. 25 18 1 Interest .. .. . • • • 310 0 Incidental expenses .. .. .. 818 11 Eent .. .. .. .. 736 Materials for practical classes .. .. 13 4 9 Government subsidy .. .. .. 382 2 8 Law-costs .. .. .. .. 6 10 Eepairs .. .. .. .. 912 5 Alterations to premises .. .. 450 0 0 Balance — Bank of New Zealand, current account 24 1 2 Dunedin Savings-bank .. .. 108 1 4 £1,322 4 0 £1.322 4 0 Dunedin, 28th February, 1898. Audited and found correct. C. Geatee, Auditor.

Supebintendent's Repoet fob 1897. In presenting my report of the work done during the session, which closed on the 30th September, I have to call attention in the first instance to the very large numbers who have taken advantage of the classes this year. The total number enrolled, which is irrespective of nearly forty more who joined classes which were not proceeded with, was 701. The great increase which this represents is best shown by giving the numbers enrolled each year since the commencement of the association's work: 1889, 288; 1890, 170; 1891, 318; 1892, 364; 1893, 390; 1894, 385; 1895, 457 ; 1896, 458 ; 1897, 701. If anything were needed to show how strong a hold this work has gained, on the public it is supplied by these figures. It is no doubt true that no less than 566, or 80 per cent, of the total number enrolled, only enter for one of the classes on the syllabus ; but even this means that these students give up considerable part of two evenings each week to improve their educational status.