The Canadian government is planning to set up a new online auction site, in some ways similar to auction icon eBay, to sell off its constant stream of surplus goods and equipment.

Word has it that the current CGSurplus site will be massively revamped, making it easier for buyers to find what they’re looking for and adding new features, including the ability of buyers to monitor the bidding on items they’re interested in.

The Canadian government says it sells off about (C)$40 million per year in seized and surplus goods each year, direct to buyers or jobbers, via live and online auctions.

The government hopes that the new eBay-style open bidding system will spark bidding wars on some of the more popular items up for sale and result in higher revenues.

A similar initiative by the U.S. federal government, GovSales.com, attracts more than 250,000 visitors a month and has seen revenues increase more than 20 per cent over the past year, since moving to an open bidding system.