Ok the answer is the rear subframe from the gusset weld back seems to have been bent down slightly. No idea why. I cant imagine how this would have bent in a fall unless the bike was upside down and completely level.
I intend to strip the back end heat up the end of the bars and bend em back up enough to get the pannier on, which at present is about 2 cm away.
Any ideas how i can best do this and is it gonna bend back down ???
Any one had or seen this before ??? Steptoe perhaps ??