The reason it wasn't working was because the script needed to be run as the user pi.
I changed the code in the rc.local script to this: su - pi -c "bash /home/pi/logon.sh &"
This makes the script run as the user pi and the ampersand is used to make the script run separate to the rc.local script by forking it. (http://hacktux.com/bash/ampersand)