The Eisteddfod Council will meet to discuss its financial problems

Freak weather at last year's Welsh language festival in Pembrokeshire meant attendance figures dropped dramatically, which led to significant financial losses.

It is feared that this could have an impact on this year's event in Maldwyn in August, with the closure of the young people's field.

The eisteddfod council will discuss the financial problems at a meeting on Saturday.

The 2002 eisteddfod, which was in St David's, made losses estimated at �180,000.

This contributed to a loss in last year's accounts of �317,000.

The eisteddfod council will be told that savings need to be made and new sources of income have to be found.

If they are not found it is possible that the eisteddfod will no longer offer cr�che facilities, and will scrap the young people's entertainment which is based around the Maes B field.

The Eisteddfod in 2002 made losses estimated at �180,000

The Welsh Language Board has commissioned research in partnership with the eisteddfod into its future and recently increased its grant to the event in response to a long-term funding shortfall.

Its chair Rhodri Williams said it was important that the festivals' future was secured.

"The eisteddfod has had a bad time between foot and mouth, bad weather in St David's, and the increasing costs due to heath and safety legislation," he said.

"The public also expect improved facilities without any increase in the costs they pay."

He said no plans had been made about how money could be saved.

"At this stage it's too early to comment on individual suggestions.

"We have to look at the options over a period of time.

"We need to see the result of the report we have commissioned then take the decision that will secure its long term future."