Does anyone have any idea which would be the best use for the above? 'Proof-reading', 'proof reading' or 'proofreading'? I ought to know, as an exponent of the art myself , but my colleague and I cannot come to an agreement.

As I'm aware that context would alter use, here is an example:

"My daily tasks include editing copy, [P] and making the tea."

If you have an answer to this, thanks in advance,

I'd say "proofreading". "Proofread" is a verb.
Hmm. Think I'd go for 'proof-reading'; but I wouldn't object to 'proofreading'.

Any other thoughts out there?

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Either is acceptable. Just be consistent once you decide on one.

(Personally, I prefer to hyphenate, but there is no good reason. Both are listed in the dictionary. This issue goes for several words, usually more modern words, that are becoming so popular that it is permissible to drop the hyphen and treat them as their own words.)
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Well, I think probably you should listen to your colleague, as no doubt she or he is more experienced than you in the way of the word.

Plus everyone knows that it's proof reading and proof reader.

Hope that helps you cid.

Cid, is your colleague called Sav, by any chance?