Thanks for the help. Between yourself and the Ubuntu forum I have managed to solve the problem.
I needed to specifically point to the wigwam executable, and in the start_hiawatha function.
function start_hiawatha {
	if [ -f ${PIDFILE} ]; then
		echo -e ${YELLOW}"Hiawatha is already running"${NORMAL}
	else
		/usr/local/sbin/wigwam -q
		result=$?
This even though the containing folder is in my PATH statement 
PATH="/bin:/usr/bin:/sbin:/usr/sbin:/usr/local/sbin"
With this change the server starts as required.
Thanks for the help.
Mal