CANADA'S defence minister has said he could not rule out suing the British government over the purchase of four second-hand submarines.

Bill Graham, speaking after a fire crippled HMCS Chicoutimi and claimed the life of one its crew, said it was possible Canada could take legal action against the Ministry of Defence.

The former British vessel and three others were sold to Canada in 1998, but remained in British hands as BAE Systems prepared it for going back into service.

The blaze, which broke out on Chicoutimi a day after it embarked on its maiden voyage as a Canadian vessel, damaged her to an "unimaginable degree," Mr Graham, shown right in the picture, said at a press conference in Glasgow.

Asked whether Canada would sue Britain amid allegations the Chicoutimi was cannibalised for parts for the other three he said: "I'm not ruling out any single thing."

But the minister added: "I'm certainly not going to comment on the likelihood of anything taking place until we have established the facts.

"Once we have the facts, we can all make our decisions.

"We're a great ally of the UK.

"We work together on many, many fronts and we will work this out as friends do."