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Of the other schools decided upon Mangorongo, King Country, and Waitahanui, Taupo, should be ready early in 1905, and Waimarama, Hawke's Bay, somewhat later. The Inspector's report contains a list of the applications for new schools, with a note where possible upon the situation of each case. Satisfactory progress still continues to be made in handwork in Native schools. The workshops are, generally speaking, doing very satisfactory work, and are much appreciated in the districts where they are located. Two boys who had received training in the workshop attached to the village school have since been apprenticed, and are giving every satisfaction to their masters. The scheme for the establishment of a model kainga at Pamoana, Wanganui River, has been in abeyance during the year owing to the occurrence of unforeseen difficulties in connection with its working. At the five boarding-schools, St. Stephen's and Te Aute for boys, and Hukarere, St. Joseph's, and Victoria Schools for girls, the Government offers 113 scholarships, tenable for two years, for children of predominantly Maori race who pass the Fourth Standard at the Maori village schools. At the end of the year 91 of these places were occupied, 36 by boys, and 55 by girls. Maori children attending public schools who pass the Fifth Standard before reaching the age of fifteen may obtain allowances of £20 a year to enable them to attend a secondary school or to enter upon industrial pursuits. There are seven scholars receiving higher education and two boys serving apprenticeships under these conditions. The Department has during the year taken measures to secure an extension of the arrangements made for the training of Maori girls as nurses. The authorities of Napier and Wellington hospitals agreed to give their assistance in the matter, and there are now two probationers on the staff, one at each hospital, besides which the Napier Hospital Trustees admit two pupils as day-scholars. University scholarships are also offered to Maori youths of marked ability in order that, after matriculating from Te Aute College, they may enter one or other of the university colleges. At present scholarships are held by one Maori youth in medicine and by another in law. The Department still finds a certain amount of difficulty in obtaining suitable openings for boys that prefer apprenticeship to a trade to the ordinary scholarship. This difficulty may gradually diminish as the efficiency of the workshop training afforded at the village schools increases ; in fact, it is desirable that greater effort shall be made in the direction of manual training in the schools. Especially does this seem necessary in the case of Maori girls, many of whom do not care to leave the kainga for the secondary school, but would benefit immensely from a training in plain cookery and domestic economy. The qualifications for scholarships entitling Maori youths to secondary education, or to enter upon industrial pursuits, are the passing of Standard IV. of a Native school, or Standard V. of a public school, the age-limit being fifteen years. Seven apprenticeship scholarships were held under these conditions during 1904. The total expenditure on Native schools during the year was £24,957, which includes £85 paid from Native school reserves funds and £2,000 from Civil List for Native purposes. Deducting £76 recoveries from various sources the result is a net cost of £24,881 for the year 1904, as against £28,679 for the previous year. Included in this sum is expenditure on new buildings and additions, £3,273 ; on secondary education (including boarding-school fees for holders of scholarships from village schools, apprentices, hospital-nursing scholarships, university scholarships, and travelling-expenses of scholarship-holders), £2,348 ; and on the model kainga at Pamoana, £125. The staff of the village schools included 71 masters, 20 mistresses in charge, 86 assistants, and 11 sewing-teachers. The masters received salaries ranging from £264 lis. lOd. to £91 ss. ; the headmistresses from £214 9s. 2d. to £80 Bs. lOd. ; the assistants from £50 to £8 17s. 3d. ; and the sewing-teachers from £11 15s. to £8. In one school the master and mistress work conjointly, the total salary being £301 6s. at the end of the year. It must be understood that the assistants and sewing-teachers are generally members of the teacher's family who give assistance for some part of the day's work.