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2. New Zealand Staff Cobps and Permanent Staff. (a.) Redistribution of Duties. As the result of the experience gained in the working of the new scheme, it has been found necessary to redistribute the duties of officers of the Staff Corps. This has been done, and the redistribution has resulted in the large amount of work necessitated by its development falling more evenly on all officers. (b.) Appointments to the New Zealand, Staff Corps. The present strength of the New Zealand Staff Corps is sixty-six, and it is not proposed to take in any more officers to fill the establishment of 100, except through the Royal Australian Military College, as recommended by Lord Kitchener. It would be obviously unfair to those cadets now in training there to bring in any one over their heads, and in the meantime we must make the best of it, and work short-handed till they become available. (c.) Appointments to the Permanent Staff. The Permanent Staff has been increased by the appointment locally of twenty-nine Quarter-master-sergeants, one for each regiment of Mounted Rifles and Infantry, and of seventy-three additional Sergeant Instructors. This increase in the number of N.C.O.s is absolutely essential, it having been found quite impossible for the previously existing staff to cope with the instruction of the large number of Territorials and Senior Cadets, and at the same time to carry out the necessary work of registration, &c, in the areas, and exercise a proper care and supervision of the arms, equipment, and clothing. I am confident that the appointment of the Quartermaster-sergeants will be the means of saving much money to the country by obviating the heavy losses and deficiencies which have hitherto prevailed. They underwent a course of instruction at Headquarters before being posted to units. The following will be the permanent establishment of N.C.O.s of the Permanent Staff (inclusive of nine N.C.O.s on loan from England, who will eventually be replaced by members of the New Zealand Staff) :— 115 Area Sergeant-majors. 29 Regimental Sergeant-majors. 29 Regimental Quartermaster-sergeants. 8 Brigade Sergeant-majors. 1 Field Artillery Instructor. 4 Engineer Instructors. 4 Signal Company Instructors. 4 Field Ambulance Instructors. 6 on loan to the Education Department for the instruction of Junior Cadets. 200 (d.) The Permanent Forces of the Dominion will thus consist of— New Zealand Staff Corps (officers) ... ... ... ... ... 100 New Zealand Permanent Staff (non-commissioned officers) ... ... 200 Royal New Zealand Artillery : All ranks ... ... ... ... 300 600 The establishment of the Territorial Force is 30,000, which gives a proportion of one permanent officer, non-commissioned officer, or man to every 50 Territorials, exclusive of Cadets and Rifle Club men. This proportion is very low, but if the present excellent standard of permanent soldiers is maintained it will, I think, be sufficient. 3. Classification of Departmental Staff. The provisional classification of-the officers and clerical staff (civil branch) of the Department, gazetted in conjunction with that of other Departments of the Public Service, and the appeals in connection therewith having been considered as requested by the Public Service Classification Board, a revised classification of the departmental officers concerned has been submitted, which it is considered places the position of officers or appointments and the merits of their occupants in their proper sequence, and which it is hoped will be adopted for the efficiency and well-being of the Department. 4. Special Training of Permanent Officers and Non-commissioned Officers. (a.) The following officers have been sent Home and to India for training during the past year : — To England : Lieut.-Colonels Bauchop, C.M.G., Abbott, D.5.0., Major McDonald, Captain Seddon, Lieutenants Turnbull, Burn (A.H.), Garland, New Zealand Staff Corps, and Lieutenant Standish, Royal New Zealand Artillery. To India : Major Potter, New Zealand Staff Corps, and Captains Symon and Smythe, Royal New Zealand Artillery. This list does not include Colonel Robin, who is at the War Office; Brigadier-General Davies, who is commanding the 6th Infantry Brigade at Aldershot; and Majors Richardson and Gardner, who are at the Staff College at Camberley.