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 Police are investigating Steve's car being lit on fire. Steve is arrested and Hohepa confesses. Hohepa returns to 5F as punishment.
Hohepa is offered a contract to play rugby at a private school, which leads Dasent to see lucrative possibilities for Tepapawai by selling his Polynesian pupils to the highest bidder.
Gormsby uses the school dance as an opportunity to teach his boy some etiquette, Hakanui's gambling gets worse, and Hohepa needs a car to impress his girlfriend.
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.