For information:
The database .dmp file is approximately 1GB. We run vacuum --analyze every hour and --full --analyze daily. With a DB that size do we need to increase memory by alot? I actually have the memory at hand to upgrade to 12GB but we haven't had chance to install it yet.
I've installed the latest dump file on a rubbish server and it is proportionally slow, so that should count out any other issues such as location or Red Hat OS issues.