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.

Dasent needs to impress Marion Patterson from the ERO so organises a special talent show. He wants the boys from 5F to do a hip-hop act but Gormsby prefers something a bit different - Coon Tunes.

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?

The ERO Report is finally delivered revealing that two teachers must go. News that one of the teachers has a terminal illness sends the fragile Dasent's spirits soaring.

It's Open Day at Tepapawai and everyones got something to do except 5F. Steve is mucking round with his new video cameras, Fenn is doing an interpretive dance. 5F are put on car park duty. Everything goes wrong with switched videos, new computers lighting the school on fire and Agnes trying to commit suicide.

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.

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.

One of the boys is having sex with a teacher and an investigation begins after a used condom is found. Agnes aborts Steve's baby.

A new relief teacher is required and the only person is Mr Gormsby. He trys to discipline a student physically and gets in trouble. When the student acts out again he threatens another to get a confession.

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

The other staff don't like Gormsby and try to get him fired. When Dasent refuses the staff strike and he gives in. But Gormsby learns some tricks from Hohepa's Uncle Dion to get himself reemployed.

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.

Dasent finds out how much money he can make from having physically and mentally handicapped boys at Tepapawai. A reatarded boy joins the school and causes hassle for all the teachers. Eventually Gormsby straightens him out and Steve ruins Dasent's plans with some loud insults.