Dasent is released from the mental hospital and returns to his roll as principal. Steve leaves, Gormsby is rehired as the new Guidance Counsellor. Steve returns and Gormsby goes back to teaching 5F

The school camp funds vanish in suspicious circumstances, but Gormsby isn't about to let the boys miss out.

The school is in danger of being closed following a report from Marion Patterson. The staff all band together to actually try to appear to be doing a decent job of teaching. Can they save Tepapawai?

Marion breaks off her engagement with Roger and Tepapawai's future is not looking good. Steve is up to his old tricks and only thinking of himself. But the boys soon sort things.