Folder actions has stopped importing photos into iPhoto
I decided to scrap the import into iPhoto option, and have no created an alias for the Auto Import folder within the iPhoto package itself, placed this in another folder, and created a new folder action within Automator to:
Copy finder items (as I want to leave the original picture in my uploads folder) which points to the alias for Auto Import.
Launch application, which opens iPhoto, and therefore imports anything within the Auto Import folder.

This seems to be working reliably after taking several photos on my phone, and rebooting the laptop several times.