Postfix: fatal: no SASL authentication mechanisms (unable to telnet)

I am setting up Postfix with Dovecot for a mail solution. When I try to telnet localhost 25 the connection closes.

The error seen in the log is:

postfix/smtpd[22958]: initializing the server-side TLS engine
postfix/smtpd[22958]: connect from localhost[::1]
postfix/smtpd[22958]: fatal: no SASL authentication mechanisms
postfix/master[32651]: warning: process /usr/libexec/postfix/smtpd pid 22958 exit status 1
postfix/master[32651]: warning: /usr/libexec/postfix/smtpd: bad command startup -- throttling

The server is a CentOS 7 server

Linux <redacted> 3.10.0-123.8.1.el7.x86_64 #1 SMP Mon Sep 22 19:06:58 UTC 2014 x86_64 x86_64 x86_64 GNU/Linux

Here's an excerpt from postconf -n

postconf: warning: /etc/postfix/main.cf: undefined parameter: virtual_mailbox_limit_maps
alias_database = hash:/etc/aliases
alias_maps = hash:/etc/aliases
broken_sasl_auth_clients = yes
command_directory = /usr/sbin
config_directory = /etc/postfix
daemon_directory = /usr/libexec/postfix
data_directory = /var/lib/postfix
debug_peer_level = 2
debugger_command = PATH=/bin:/usr/bin:/usr/local/bin:/usr/X11R6/bin ddd $daemon_directory/$process_name $process_id & sleep 5
dovecot_destination_recipient_limit = 1
html_directory = no
inet_interfaces = all
inet_protocols = all
mail_owner = postfix
mailq_path = /usr/bin/mailq.postfix
manpage_directory = /usr/share/man
message_size_limit = 30720000
mydestination = $myhostname, localhost, localhost.localdomain
myhostname = <redacted>
mynetworks = 127.0.0.0/8
newaliases_path = /usr/bin/newaliases.postfix
proxy_read_maps = $local_recipient_maps $mydestination $virtual_alias_maps $virtual_alias_domains $virtual_mailbox_maps $virtual_mailbox_domains $relay_recipient_maps $relay_domains $canonical_maps $sender_canonical_maps $recipient_canonical_maps $relocated_maps $transport_maps $mynetworks $virtual_mailbox_limit_maps
queue_directory = /var/spool/postfix
readme_directory = /usr/share/doc/postfix-2.10.1/README_FILES
sample_directory = /usr/share/doc/postfix-2.10.1/samples
sendmail_path = /usr/sbin/sendmail.postfix
setgid_group = postdrop
smtpd_recipient_restrictions = permit_mynetworks, permit_sasl_authenticated,     reject_unauth_destination
smtpd_sasl_auth_enable = yes
smtpd_sasl_authenticated_header = yes
smtpd_sasl_path = private/auth
smtpd_sasl_type = dovecot
smtpd_tls_cert_file = /etc/pki/dovecot/certs/dovecot.pem
smtpd_tls_key_file = /etc/pki/dovecot/private/dovecot.pem
smtpd_tls_loglevel = 4
smtpd_use_tls = yes
unknown_local_recipient_reject_code = 550
virtual_alias_domains =
virtual_alias_maps = proxy:mysql:/etc/postfix/mysql-virtual_forwardings.cf, mysql:/etc/postfix/mysql-virtual_email2email.cf
virtual_gid_maps = static:5000
virtual_mailbox_base = /home/vmail
virtual_mailbox_domains = proxy:mysql:/etc/postfix/mysql-virtual_domains.cf
virtual_mailbox_maps = proxy:mysql:/etc/postfix/mysql-virtual_mailboxes.cf
virtual_transport = dovecot
virtual_uid_maps = static:5000
postconf: warning: /etc/postfix/main.cf: unused parameter: virtual_create_maildirsize=yes
postconf: warning: /etc/postfix/main.cf: unused parameter: virtual_maildir_extended=yes

and from doveconf -n

# 2.2.10: /etc/dovecot/dovecot.conf
# OS: Linux 3.10.0-123.8.1.el7.x86_64 x86_64 CentOS Linux release 7.0.1406 (Core)  ext4
auth_mechanisms = plain login
log_timestamp = "%Y-%m-%d %H:%M:%S "
mail_location = maildir:/home/vmail/%d/%n/Maildir
namespace {
  inbox = yes
  location =
  prefix = INBOX.
  separator = .
  type = private
}
passdb {
  args = /etc/dovecot-sql.conf
  driver = sql
}
protocols = imap pop3
service auth {
  unix_listener /var/spool/postfix/private/auth {
    group = postfix
    mode = 0660
    user = postfix
  }
  unix_listener auth-master {
    mode = 0660
    user = vmail
  }
  user = root
}
ssl_cert = /etc/pki/dovecot/certs/dovecot.pem
ssl_key = /etc/pki/dovecot/private/dovecot.pem
userdb {
  args = uid=5000 gid=5000 home=/home/vmail/%d/%n allow_all_users=yes
  driver = static
}
protocol lda {
  auth_socket_path = /var/run/dovecot/auth-master
  log_path = /home/vmail/dovecot-deliver.log
  postmaster_address = postmaster@shamil.co.uk
}
protocol pop3 {
  pop3_uidl_format = %08Xu%08Xv
}

And for rpm -qa | grep sasl

cyrus-sasl-md5-2.1.26-17.el7.x86_64
cyrus-sasl-gssapi-2.1.26-17.el7.x86_64
libgsasl-1.8.0-2.el7.x86_64
cyrus-sasl-ldap-2.1.26-17.el7.x86_64
cyrus-sasl-lib-2.1.26-17.el7.x86_64
cyrus-sasl-plain-2.1.26-17.el7.x86_64
cyrus-sasl-sql-2.1.26-17.el7.x86_64
cyrus-sasl-gs2-2.1.26-17.el7.x86_64
cyrus-sasl-2.1.26-17.el7.x86_64
cyrus-sasl-scram-2.1.26-17.el7.x86_64
cyrus-sasl-devel-2.1.26-17.el7.x86_64

and ps ax | grep sasl, shows authsasld is running?

23280 ?        Ss     0:00 /usr/sbin/saslauthd -m /run/saslauthd -a pam
23281 ?        S      0:00 /usr/sbin/saslauthd -m /run/saslauthd -a pam
23282 ?        S      0:00 /usr/sbin/saslauthd -m /run/saslauthd -a pam
23283 ?        S      0:00 /usr/sbin/saslauthd -m /run/saslauthd -a pam
23284 ?        S      0:00 /usr/sbin/saslauthd -m /run/saslauthd -a pam

Can anyone see anything wrong with my configuration?