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The vessel is rather small for a training-ship, as she will not accommodate more than about sixty boys. She is at present covered with awnings fore and aft, but even with these, when the weather is bad for several days, things become damp and remain so until the weather clears, as there is no proper drying-room. The want of a proper wash-house, a schoolroom, and a room in which boys could be isolated in case of sickness is much felt. It would, however, be difficult, if not impossible, to provide these conveniences owing to the size of the ship. Captain Hooper, R.N.R., is commander of the vessel, and it is proposed to appoint a chief officer and chief engineer shortly. The other officers and the seamen and firemen required to man the ship at sea will be employed when she is ready to go to sea. It is proposed that short trips shall be made after the winter, and when the boys, whose number will be considerablyincreased by that time, have had a little sea experience, it is intended to make longer trips, and visit other ports. Lighthouses—All the lighthouses have been maintained in an efficient manner. Ihey have been inspected by Captain Bollons when the "Hinemoa" called at them with oil and stores, and 1 have inspected'those at Cuvier Island, Bean Rock, Ponui Passage, Tiri Tiri, Moko Hmou, Cape Maria van Diemen, Kaipara, Manukau North and South Heads, Cape Egmont, Godley Head, Jack's Point, Nelson, and the leading-lights at Tory Channel. Considerable repairs have been found to be necessary to Ponui Passage tower, and these are now being carried out. A large landslip occurred at Cuvier Island in February last, burying part of the track, gardens, and fences, and injuring the outbuildings. Cape Egmont: New guttering. &c, has been put on the dwellinghouses. A new telephone has been put in the tower, and it has been decided to place the lighthouse in direct communication with New Plymouth after 5 p.m. Kaipara Head: The landing-store has been moved further back, a new cart and coal shed has been erected, and the telephone-line between the lighthouse and Pouto has been renewed. French Pass: A new boatshed has been erected. The beacon which marks the end of the reef opposite the lighthouse, and on which a light is shown, is in a bad condition, and should be rebuilt without delay. Cape Campbell: A new flagstaff has been erected. Akaroa Head: Telephones have been substituted for the electric bells between the tower and dwellings. Nugget Point: A contract has been let for the supply of timber for a new house. Dog Island: Telephones have been substituted for whistles between the tower and the dwellings. An incandescent burner has been installed at Pencarrow Head Lighthouse, which has greatly increased the power of the light on a less consumption of oil. A burner of this kind has been ordered for Stephens Island, and it would be advisable to make provision in this year's estimates for similar burners for some of the other lighthouses, as there is no doubt that they give a much better light, and enable a considerable saving to be made in the cost of oil. No new lighthouse has been erected since the completion of that at Kahurangi Point. To complete the proper lighting of the coasts of the colony several more will be required, and I recommend that provision for one should be made in this year's estimates. The North Cape, or Cape Brett, on the southern side of the Bay of Islands, appears to be the place where a light is most urgently required, as there is now no light between Cape Maria van Diemen and Moko Hinou. Of these two places I think the North Cape is the place where a light is most wanted. Owing to the impossibility of landing at Kahurangi Point when there is any sea on, the " Hinemoa " has often been delayed for some time when going there with oil and stores, and in order to obviate such delay, arrangements have been made for the small steamer which trades between Westport and Karainea to tender this lighthouse in future. Being near the place she can choose suitable weather for landing. During the year one lightkeeper lias retired on pension, one has retired on compensation for loss of office, one has been transferred to the harbour service, and five have resigned. Eight new appointments have been made. The amount of light dues collected during the year was £32,454 Is. 4d., as compared with £29,443 during the previous year. Attached is a statement showing the amount received at each port. Fog-signals. —The explosive signals at Pencarrow Head and Taiaroa Head have worked satisfactorily, but a good deal of repair has had to be made to the former. It has been decided to establish'signals at Godley Head and Cuvier Island, and the necessary apparatus, &c, has been ordered from England. That for Godley Head will be an automatic signal, similar to those at Pencarrow and Taiaroa Head, but the apparatus for Cuvier will be one for attachment to the tower, and each cartridge will be attached and fired by the keeper on wafch without his having to leave the tower. Harbours. —The harbours under the control of the Department have been worked in an efficient manner, and the buoys and beacons in them are in good order. Mr. W. A. Thorn, Clerk to the Court at Tauranga, who was appointed Harbourmaster at that place a few years ago to give him power to regulate the times and places of shipping and landing cargo, has resigned the latter position, as he has not time to perform certain other duties which it has become necessary should be carried out by the Harbourmaster, and Mr. A. F. Tunks has been appointed to the position. Mr. F. Edwards, Railway Manager, who was also Harbourmaster at Picton, having been moved from that place, the appointment of Harbourmaster has been conferred upon Mr. J. W. Jones, Railway Wharfinger.