The Prime Minister outlines his plan to repair the battered economy today.

John Key will deliver his state of the nation speech to the opening of Parliament and will outline his plans for the taxation system but without the detail which will come in the Budget. He expects support for the government's economic agenda from its confidence and supply partners. Mr Key says some discussions have been held with the ACT, Maori and United Future parties but no deals have been struck guaranteeing their support.

The head of the economic forecasting firm Infometrics Gareth Kiernan says it is Mr Key's opportunity to make his mark but cautions he is a conservative politician. He says Mr Key will not want to alienate the middle vote when he addresses Parliament at two o'clock.