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girls are training, or about to begin their training, as nurses in public hospitals under this scheme. Staffs and Salaries. The staffs of Native village schools in December, 1916, included 79 male and 37 female head or sole teachers and 131 assistants. The average salary of male head or sole teachers was £196 7s. 6d., of female head or sole teachers £154 7s. 6d., and of both combined £182 19s. 7d. These figures show an advance on the average salaries for the previous year, which were £189 16s. 2d., £150 15s. 2d., and £179 lis. respectively. The average salary of the 123 female assistants was £80 2s. Id., and of the eight male assistants £65 12s. 6d. The total expenditure on Native-school teachers' salaries and allowances for the year ending 31st March, 1917, was £32,334, the corresponding figure for the previous year being £31,019. In common with other public servants Native-school teachers were paid a war bonus in addition to their usual salaries, amounting to £15 in the case of married persons and £7 10s. in the case of those unmarried. Expenditure. Preference to Table H8 will show that the total net expenditure on Native schools during the year ended the 31st March, 1917, was £41,792. The chief items of expenditure are teachers' salaries and allowances, £32,334; new buildings and additions, £2,687; maintenance of buildings, repairs, &c, £1,294; secondary education, £2,465; books and school requisites, £1,076.

No. 2. REPORT OF INSPECTOR OF NATIVE SCHOOLS. Sir,— 31st May, 1916. I have the honour to place before you the following report upon the general condition of the Native schools and colleges of the Dominion and the work done by them during the year 1916:— New Schools, etc. At the close of the year 1915 there were in active operation 117 village schools, including one side-school. During the year 1916 new schools were established at Te Iloro, Whangarei District; and at Waikeri, Herekino; while liakaunui, Kawhia, which had been closed temporarily, was reopened. A part-time school worked in conjunction with the Waiotapu Native School was opened at Waimahana, Waikato River, Hot Lakes District. Two schools, Wharekahika, East Coast, and Te Whaiti, Urewera Country, were closed temporarily towards the end of the year, and the school at Te Kopua, Waikato, was closed permanently. The number of schools which were in operation at the end of the year 1916 was thus 118. The schools at Waikeri and at Waimahana were opened in buildings provided by the Maoris of those settlements. At Te Iloro, Whangarei, and at Whakarewa, Te Mahia, the erection of school buildings was completed in the early part of the year, and teachers' residences at Pukepoto, North Auckland, and at Motuti, Hokianga, were also built during the year. The erection of the necessary school buildings at Moerangi, Raglan, where temporary buildings have been used as a school and residence, and the replacement of the old buildings at Pamapuria, North Auckland, by up-to-date structures have been decided upon. In the case of the application for a school at Kaitaha, East Coast, arrangements have been made to meet the requirements by opening a school in buildings provided by the Maoris. With regard to Ruatahuna and Maungapoliatu, Urewera Country, no definite progress in the direction of erecting buildings has been made; an effort is now being made, however, to establish schools in those places in temporary buildings. During the year applications for schools at Manutahi, East Coast, and at Kopua and Karakanui, Kaipara Harbour, were received by the Department, and negotiations in connection with these applications were commenced. In the case of Manutahi a fine site of 5 acres of valuable land, together with a monetary contribution of £200, has been offered by the Maoris concerned. Applications for schools were also received from the Maoris of Paewhenua, Mangonui, and from Purerua, Bay of Islands, but as it was considered that the children concerned could reasonably be expected to attend schools at no great distance the applications were accordingly declined. Owing to an increase in the attendance at several schools, it will be necessary to provide additional accommodation.