The extensive display of Australian memorabilia was housed in a landmark building which celebrated the legend of Banjo Paterson’s iconic song set to the tune of music played at Warrnambool racecourse in 1894.

“Destruction of the centre is a terrible blow to this town and for Australia in general,” said Felix Meagher, the program director and co-founder of Koroit’s Lake School of Celtic Music.

“However, the legend remains intact and they will rebuild. I’ve been through the collection up there — it’s amazing.

“It includes rare photographs, including one of Banjo and his fiancé Sarah Riley who we believe was there when the song was written.

“Warrnambool is right in the middle of the Waltzing Matilda story.”

Meagher visited the centre last year during his sojourn in Winton for performances of The Man They Called the Banjo, a musical which he co-wrote with the late Warrnambool musician Dennis O’Keeffe.

Next week Meagher will return as musical director for entertainment at Winton’s North Gregory Hotel during the annual Splendid Outback Film Festival.

O’Keeffe did extensive research on Paterson and how he came to write Waltzing Matilda, now regarded as probably Australia’s best known folksong.

Paterson, a young poet staying at Dagworth station near Winton, first heard the tune when it was played by Christina Macpherson, who had heard it herself a year earlier at the Warrnambool races when the local band played a piece called Bonnie Wood o’ Craigielea.

“The original Craigielea was probably a love story and the tune played at the Warrnambool racecourse was a march based on the love song,” Meagher said.

The Winton centre was built in 1998 after the centenary celebrations for Paterson’s 1895 song and housed extensive memorabilia and interactive displays.

Police and fire officers were yesterday investigating the cause.