More good news - I cleaned all the damaged pieces of magnet off the main magnet and put the pump back together and switched it on with no hose attached and it worked. I'm not sure how long it will run like this.
I recirculated the system for about 10 minutes and all seems to be working well. The level in the tank stays the same. However, the level was down to start with so I topped up the tank with a hose and it went right back down to where it was.....confused
Another thing, the return comes back into the tank through my spray bar....this thing sounds like a huge waterfall, I couldn't hear my wife talking (not always a bad thing I know