Make sure /etc/modt is world readable.
It should be owned by root and have 644 permissions.
I've tried giving permissions back to root, and chmod 644 but it still gives the missing file and failure. I've also tried putting some text back into the motd but still does the same?
sudo chown -R root /etc/motd
sudo chmod 644 /etc/motd
Okay I went back through all MOTD related files and chmod then to 644 and 755 respectively.
The motd file in /etc/init.d/ didn't have the correct permissions it seems as now there is no missing file and no failures