The Abbott Government is making a new pitch to South Australia this week after take a hiding in the polls over its approach to the local defence industry.

The campaign begins today with Industry Minister Ian Macfarlane to announce the winners of manufacturing grants, and will continue with a Cabinet meeting and, reportedly, a major defence announcement.

Since former Defence Minister David Johnston’s infamous “canoe” comments last year which insulted ASC workers in Adelaide, state Labor has won the by-election for Fisher, and federal polls have shown a backlash against the Liberals in SA.

In contrast to the combative approach of the past, Macfarlane today was complimentary towards both the State Government and South Australia’s beleaguered defence industries.

He wouldn’t confirm a report in today’s Australian newspaper that Prime Minister Tony Abbott would announce a $20 billion plan this week to build nine frigates in South Australia and Victoria.

However, he was positive about the state’s capacity to win its share of upcoming defence contracts.

“I can’t detail what those decisions will be but I see an opportunity in South Australia in the defence area, not just in the shipbuilding area but right across defence,” he told ABC 891 radio.

“There’s some very large acquisitions both in terms of land transport and also right across the whole spectrum of defence.

“South Australia has a wonderful record on that and whether we announce it today, tomorrow or next week or next year I’d expect South Australia to get a very good share of jobs that come from defence industry in the future.”

Macfarlane said the relationship between the South Australian and federal governments had improved, singling out for praise his relationships with Premier Jay Weatherill, Treasurer Tom Koutsantonis and Manufacturing Minister Kyam Maher.

“I have deliberately not brought politics into any of my statements and any of my negotiations with South Australia,” he said.

“Likewise, both the Premier, the Treasurer Tom Koutsantonis and I have a very good relationship.

“Kyam and I talk regularly on the phone – he rings me anytime he’s got an issue. We’ve kept that relationship.

“In other areas the relationship has improved… In the end what we want to do with the South Australian Government is create jobs.”

Abbott, in Adelaide today, also stretched the hand of cooperation, saying  he would hold talks on job creation and investment with  Weatherill today.

“This state has some particular issues, but I have tremendous faith and confidence in the people of South Australia,” he said.

According to The Australian, a favourite media conduit for the Abbott Government, the Prime Minister intends to announce a plan to make naval shipbuilding sustainable via a “continuous build”, including the commissioning of nine new frigates to be built in SA and Victoria.

The newspaper reports that ensuring shipbuilding jobs will give the Government more leeway on where the new submarines will be built.

Macfarlane and Maher have called a press conference for this afternoon to announce the latest recipients of a $30 million program to help SA’s manufacturing industry transition from the automotive assembly industry to more advanced manufacturing.

Macfarlane said the Next Generation Manufacturing Investment Programme had been highly competitive and attracted a strong response from local companies.

Communications Minister Malcolm Turnbull has also announced that 400 jobs will be created in SA to help with the roll-out of the NBN.

– with AAP