FROM THE OFFICE OF PUBLIC AFFAIRS

Mr. Chairman, Senator Baucus, Members of the Committee, thank you for the opportunity to appear before you today.  I am honored to be President Bush’s nominee to serve as Deputy Secretary of the Treasury Department, and I am most grateful to Secretary Snow for his confidence and support.  As Deputy Secretary of the Commerce Department, I have had the privilege to serve President Bush and the American people since 2001.  In that position, I’ve had the good fortune to work closely with several of you, and I look forward to what I know will be a productive relationship with this Committee. 

I am most pleased that my wife, Diane, is here with me.  I am the proud father of five children and eight grandchildren, and I’m blessed to have their continued support.

I was born in Chicago and raised in a small Illinois community, but I spent most of my adult life in Massachusetts.  I went to Boston as an MIT graduate student and ended up staying for 40 years.  I started out my career as a professor of chemical engineering at MIT.  In 1970, I joined a then-fledgling investment firm called Fidelity Investments.  During my seventeen years there, the last ten as president, I helped orchestrate the transformation of a small company into one of the nation’s largest financial service enterprises.

Following my time at Fidelity, I spent fifteen years serving as Chairman and CEO of Cabot Corporation, a specialty chemical manufacturer and one of Boston’s oldest industrial companies. Operating 45 manufacturing plants in 25 countries, my colleagues and I faced many of the challenges that confront American companies in today’s global marketplace – from international trade, to technology integration, to safety and security. 

Three years ago, I resigned my job at Cabot; and Diane and I moved to Washington so that I might serve as Deputy Secretary of Commerce.  Collectively, my experiences have instilled in me a strong belief in the power of the American free enterprise system, the engine of innovation, productivity, and job creation that drives our nation forward.  And my time in Washington has reinforced my belief that government does have a crucial role to play in maintaining our economic health.  As President Bush has said many times, government does not create wealth; the private sector does that. But government must create an environment that encourages the entrepreneur, that allows companies to plan, that provides the flexibility necessary to create and grow, and sometimes, to fail and start over.  

It has been my privilege to work with the fine men and women of the Commerce Department to advance this vision for government.  Under Secretary Evans’s leadership, we have worked hard to open markets around the world, to promote free and fair trade, and to protect intellectual property.  We have saved lives, homes, and businesses with more accurate and timely severe weather forecasts.  We have promoted economic development and job growth throughout this nation.  And, we have strengthened the management of our programs and Department.

There is more work to be done, and that’s why I am so pleased that President Bush has extended the opportunity for me to continue my public service at the Treasury Department.  The Treasury is at the forefront of many critical policy challenges: stopping the flow of funds to terrorists around the world; reforming and modernizing the IRS; and ensuring that our current economic momentum translates into lasting prosperity for our citizens.

I’m proud to be afforded the great opportunity to serve the American people with President Bush, Secretary Evans, Secretary Snow, and now this Committee.  With that, I would be pleased to take any questions that you may have.