On further examination the calliper bracket ( thats the piece shown touching the disc) is fixed to the front forks by two bolts therefore i conclude that whoever fitted the new brake pads left two spacer washers off, this puts the bracket in the position it is now which is too close to the disc.
By installing a washer between the bracket and the forks puts the disc central to the calliper when it is mounted back onto its bracket.
The haynes manual doesn't show this as its not normally necessary to undo these bolts.
Dont suppose anyone can confirm this for me one way or the other: