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It would be a great advantage if an additional twenty-five rounds of ammunition per battery per annum oould be granted for expenditure at the annual service practice as soon as the batteries are converted to four-gun batteries. I also recommend that the capitation of field batteries should be increased by 10s. per man; the present capitation is too little; the wear-and-tear of uniforms, the expense caused by the loss and breakage of stores which is made a charge against capitation, the hiring of extra horses for training-purposes, insurance against accident, and other expenses which are special to field batteries, makes it very difficult to successfully finance a battery on the present capitation. 10s. per man would, I think, be sufficient. If this was granted every battery could and should be compelled to insure its personnel against accident. Some O.C. batteries do it at present, others say they cannot afford to insure, but it is a very important and necessary precaution. During the past year special prizes and badges have been granted to signallers in each battery. With regard to the issue of efficiency badges, it has been the custom to issue only one badge to,each successful competitor. Two badges of each nature should be issued, one for the full dress and one for the service dress, so that a specialist—layer, for instance—may be known by his badge in either dress. SERVICE PRACTICE. All the field batteries carried out service practice on two separate days, the first day being devoted to instructional practice (two series), and the second day to service-classification practice (four series). While none of the batteries qualified for first class, their shooting on the whole was satisfactory. It is the first year that firing from concealed positions at invisible targets has been carried out, consequently the standard of effect is not high as compared with last year, when direct laying was used throughout. The following comparisons are interesting: The average time from first gun to section fire was—l9os, 9 mm. 39 sec.; 1906, 11 mm. 10 sec. This reveals a slowness in ranging which should be improved upon. While it cannot be expected, nor is it so important, that ranging should be done very quickly when firing from behind cover, battery-commanders do not attach sufficient importance to getting on to time shrapnel quickly. The indistinct targets used this year has caused a reduction in hits; the average hits per shell were—in 1905, 0-59; in 1906, 0"39. ' This standard is not high enough. The ranges were increased Ibis year, the average being 2,966 yards, compared with 2,813 last year. The shortest ranges were used by A Battery. B and D Batteries fired several series at about 4,000 yards range. The fire discipline was very good in three batteries, the remainder only being fair. In each battery each subaltern fired one series, and the O.C. the rest. There is still great room for improvement in reconnoitring, and careless exposure of details is a constant fault. Much of the practice was carried out from concealed positions, and there is a marked improvement since last year, but if batteries will endeavour to do their work from concealed positions more quiokly and accurately the rest will be comparatively' simple. It is disappointing to find the same mistakes made year after year, which is inexcusable, as the criticisms on each practice are typed and distributed to officers concerned in order to prevent repetition of mistakes. The observation and decision of some battery-commanders is utill painfully slow, causing the rate of fire to be quite inadequate. Practice in quick deduction and rapid issue of orders from rounds observed is more particularly what officers require. Inaccuracy in measuring the angle of sight was the cause of several series being wasted. Errors have been made by using badly selected aiming-points. A Battery. Two days' practice: Six series, fired over the gumfields north of Lake Takapuna. Excellent practice-ground. Ranges somewhat short as compared with other batteries. Targets very indistinct. Indirect laying used throughout the practice. Ranging, very good. Observation, easy. Times, fairly good. Scouting, indifferent. Range-finding, unsatisfactory owing to nature of ground. Tactics and fire discipline, 30; fire effect, 3075: total, 6075. 2nd Class. B Battery. Two days' practice : Six series; three from behind cover, remainder from forward crest, using an aiming-point owing to indistinctness of target. Ranges, long. Battery proceeded by train to Barewood for second day's practice. Excellent practice-ground. Times, slow. Rangefinding, fair. Observation, very bad in one series; fair in two; remainder good. One serious error in laying out line of fire. Fire tactics and fire discipline, 28 ; fire effect, 28 : total, 56. 2nd Class. D Battery. Two days' practice: Six series,'fired over country partly cleared of bush, very difficult to range on. Ranges, long. Targets', very indistinct. Indirect laying used throughout. Laying back used in two series. Observation, fair. Times, slow in two series; remainder good. Battery well handled. Manoeuvring, good. Range-finding, fair. Laying, good. Tactics and fire discipline, 31; fire effect, 265 : total, 605. 2nd Class. ~i k