Many Thanks to all who have replied.
I have now solved the problem, after a fashion.
The method was use a 3mm hard drill (ie TC tipped like a masonry drill, but ground for metal) run at the max speed of the mill/drill, with plenty of pressure, as recommended.
This drilled out the grubscrew, so the brass flywheel is now secured with an M4 grubscrew.
Again, Many Thanks for all the advice.
Buying some Stellite drills may be a good idea, against future mishaps, (which are QUITE likely in my case!
Regards
Howard