Section 106 - a complex issue

Recently the East Anglian Daily Times wrote an article about Section 106 agreements and I would just like to put the issue into proper perspective.
The journalist implied that councils in Suffolk were gratuitously hanging on to over £25 million of taxpayers money when they could and should have been spending it on community assets.
Would that it were so simple!
Section 106 agreements are signed between developers and the council, generally after planning permission has been granted. The grant of permission is often made subject to the agreement which is negotiated between the developers and the officers of the council. The developer deposits money with the Council (which can be the District, the County, or a combination of the two) for specified purposes intended to compensate the community for the loss of amenity caused by the development.
Thus the agreement could be for the provision of extra school places, or highway improvements, or for open space or leisure equipment. Each agreement is different and the timing of the payment of money and the purpose for which it is intended is closely defined. Sometimes, if appropriate use for the money, within the terms of the agreement, cannot be made in time, the money has to be returned to the developer, although clearly the Council will do their very best to avoid this. An important condition is that where the money is for an asset such as play equipment it cannot be for the refurbishment of existing kit, and a new project must be found by the community. This does not always prove possible.
It is important to realise that the situation is very complex, and is being made more so at present due to the fact that many housing developments are currently ‘on hold’ due to the financial climate. This means that the relevant S 106 money is also effectively ‘on hold’ and cannot be spent.
In Babergh’s case Section 106 funds amount to around £1.6m, of which nearly £500,000 is earmarked for affordable housing provision. Parish Councils and Councillors receive reports from time to time on the current status of the moneys.
We are working hard at Babergh to make the Section 106 agreements more transparent, not only for Babergh Councillors and Parish and Town Councils, but also for members of the public. The Information Management Task Group, of which I am the Chairman, recently approved the purchase of a new database which will link the multiplicity of Section 106 agreements seamlessly with other planning documents, and make sure that the agreements are easily available for reference. Eventually they should be available on the Babergh website for all to see.