Celtica visitors have been able to see how the ancient Celts lived

Powys Council said Celtica in Machynlleth had lost £1.1m since 1998 and was attracting too few visitors.

But manager Peter Jones said he had not been made aware of losses, and claimed the council wanted to portray Celtica in such a way to justify closure.

But the council said the attraction had always "required significant funding".

The centre, which employs 14 people, may shut this year, a decade after it opened.

I can only conclude that the authority wishes to portray our difficult financial footing in such a way as to make easier their justification for recommending closure Celtica manager Peter Jones

Based at the Grade II-listed Plas building, its fate seemed to have been sealed when it failed to secure £250,000 from the Plas Machynlleth Endowment Fund to revitalise it.

Referring to the £1.1m loss, Mr Jones said: "As manager since November 2000, this is the first time I have been made aware of any such loss.

"Celtica has received an annual subsidy from Powys County Council.

"That subsidy has been budgeted, agreed and authorised by officers and members of the authority, and since 2001 Celtica has consistently operated within budget.

Celtica is based at the Grade II-listed Georgian Plas building

"I can only conclude that the authority wishes to portray our difficult financial footing in such a way as to make easier their justification for recommending closure of Celtica".

He said his staff were "naturally disappointed".

A spokesman for Powys Council said: "The attraction has operated within a budgeted deficit ranging from £180,000 to £120,000 per year since 1998. Given the pressures on the county council's budget this level of subsidy for a single attraction has to be questioned".

Regrettably, Celtica has never achieved the level of activity predicted or needed to be successful Powys Council

"The revenue deficit has increased almost year on year and cumulatively stands at £1.1m. Throughout this period the county council has provided a subsidy to the attraction to balance its budget".

He added: "The failure to attract funds from the endowment left the authority in a difficult position. With little prospect of the attraction being financially viable and the level of support needed unsustainable, its long-term future had to be considered.

"Regrettably, Celtica has never achieved the level of activity predicted or needed to be successful and has always required significant funding. If the attraction had been successful that funding could have been used for other services".

The council spokesman said staff had served Celtica and the authority well and the centre's failure was no reflection on their "hard work and dedication".

Celtica was established by the old Montgomeryshire District Council in 1995, and £2.5m was spent on refurbishing its Georgian home.

The attraction needed 90,000 visitors in the first year with the figure increasing to 110,000 for it to be successful.

However, the council said Celtica had never attracted more than 34,000 visitors per year.