Not really, is the answer I'm afraid. Wood particularly is broken down by fungal activity, which is why you see toadstools and fungal threads all over it in damp conditions. If you compost it, you'll be at the friable, black, rich soil stage before all risk of fungus is past, so that won't be much use as surfacing for a children's play area - but it would be very useful as an additive to garden soil.

I don't think any of the fungi that grow on wood chip are actually harmful though. There must be something you could water it with to kill them, off if you are worried - ask at your garden centre.

Its a good way to teach children not to touch it - if they don't see it they won't know about it.

Good point and I totally agree, but everyone is afraid of Health and Safety these days...I went out with a group of children who refused to eat blackberries because wild pants are poisonous...

Wild pants? Dangerous, not sure about poisonous Steragram ;-))

Where are these dangerous pants! I think they were my grandmothers - they were green parachute type material and rather large. They fell down once in the street. Very dangerous.