FROM THE OFFICE OF PUBLIC AFFAIRS

It is a pleasure to speak with you today. As the union representing tens of thousands of Treasury employees, in the wide range of the Bureaus at Treasury, including the Bureau of Public Debt, ATF, Customs, the IRS, FMS, and BEP, the NTEU, is a forceful voice and valuable partner in all of the critical challenges we face at Treasury. In that respect, let me say that I have gotten to know Bob Tobias and his thoughtfulness and judgement are of enormous value as we all try to work together on the issues we face at Treasury.

We at Treasury are committed to working with the NTEU to meet the challenges of creating more efficient, customer friendly service. And the best means to reach that goal is to create a healthy work environment that supports Treasury employees, because that, in turn, means they will do the best job for the American people. Treasury partnerships have continually won awards from the President's National Partnership Council for jointly developing and implementing a variety of innovative programs to more effectively promote the missions of the agency including outreach to our customers.

Now more than ever, Treasury needs to maintain a strong partnership with the NTEU. We need to continue to work to increase efficiency, improve customer service, and enforce the law -- and front line Treasury employees are the key to success. Today I would like to discuss those challenges specifically at Customs and the IRS, and then say a few words about the importance of the work of Treasury employees, and public service in general.

At Customs, we face the challenge of meeting the dual missions of managing the increasing flows of trade into the United States, while, at the same time, performing the law enforcement function of preventing the import of illegal products, particularly the interdiction of drugs. In this effort, and in partnership with the NTEU, Customs has taken some important steps over the last few years, such as the changes in the Miami Customs office, the use of x-ray technology on the Southwest border, and most recently, Operation Brass Ring. Its innovative approach, created with enthusiastic front line involvement, to increase drug seizures through intensive inspection procedures could become a template for the future. We look forward to working with you on these issues in the coming weeks, months and years.

George Weiss did a terrific job as Commissioner of Customs, and Sam Banks has done a terrific job as acting Commissioner. We all look forward to working with Ray Kelly pending his nomination and confirmation by the Senate. I've worked with him for over a year now and I know that, with Banks and Kelly, you will have a very capable team at Customs in facing these challenges.

At the IRS, we face the challenge of continuing to create an IRS that is customer friendly and efficient, while collecting the taxes due. As you all know, over the last three years we have been engaged in a highly intensive process of change and reform that has led to improved technology, and increased electronic filing, and improved telephone service.

However, the great bulk of our challenges lie ahead. Just as these problems took a long time to develop, it is going to take a great deal of time and effort by all of us to build the kind of IRS that taxpayers deserve. There are no quick fixes or easy solutions, but dramatic change is an absolute necessity. And I want to tell you that we are committed to working with you to accomplish that goal. And just as the NTEU has been a critical partner throughout our past efforts to improve the IRS, it will be a critical partner going forward.

I visited the Baltimore office on the first nationwide Problem Solving Day last November. This reinforced my belief that the vast majority of IRS employees are dedicated public servants, committed to helping taxpayers comply with the law. We are ready to work with you to make sure that we create the kind of environment where the sorts of abuses we saw last year in the congressional hearings do not recur and if they do recur are dealt with quickly and effectively.

We at Treasury can contribute in the areas where we have expertise and through the budget process to make sure the IRS has the funding it needs to accomplish its mission. By creating an environment that supports IRS employees, we will also create an environment that will best serve the American people. And as we go forward, we must work to internalize a culture of customer service.

After many months of debate, in the last few weeks of 1997, the Administration and Congress worked together to fashion a bill to reform the IRS that we think is a very good balance of many competing considerations that contributes significantly to the kind of IRS we all want to have. This bill will provide proactive, ongoing involvement by the Treasury to help the IRS meet its challenges, and an outside board that includes unions and the private sector to provide another set of perspectives and expertise.

Perhaps most importantly, and symbolizing our commitment to change, we brought on board a new type of Commissioner, Charles Rossotti, who had long experience in private business and expertise with computer systems.

One of the things that has been lost in the debate around the IRS over the last few years is the critical function the IRS performs. The IRS collects 95 percent of the federal government's revenue -- revenue that funds essential activities of government that contribute enormously to the well-being of the American people, from the nation's defense, to social security, or college loans. And by enforcing the tax laws, they make the tax system fairer, because those who cheat on their taxes increase the burden on all the rest of us.

The debate over what is the appropriate role of government has been central to our nation since its founding and I think that is a good and healthy debate. However, in recent years, far too many people, while engaging in that debate, have also denigrated the public servants who perform the nation's business. And that, in my view, is not only wrong, it is counterproductive because it makes it more difficult for public servants to preform their vitally important jobs.

Those who serve in government, at the IRS and every agency, deserve the respect of their fellow citizens -- and with that respect, they will better serve the American people. And my belief in supporting public servants has only been reinforced since I entered the Clinton Administration five years ago. Throughout my experience in government, which includes two years at the National Economic Council, and three years at Treasury, I have been continually impressed by the intelligence, professionalism and dedication of the people with whom I've had the opportunity to work.

Let me conclude on personal note. A Secretary of any Department faces a lot of challenges, including a multitude of policy issues, and has to make judgments about priorities. When I was first nominated to be Treasury Secretary I had dinner with a former Treasury official who had served with two administrations and who advised me that my highest priority should be to focus on maintaining and building on the excellence of this institution, which has served the American people so well. He was absolutely right. The key asset of any great institution is its people -- and the best guidance in terms of building an institution comes from its front line employees. And it is in that spirit that I continue to look forward to working with all of you in the future as we face our challenges. Thank you very much for your hard work, dedication and partnership.