By Paul Hutcheon
Scottish Political Editor

WENDY Alexander yesterday used her first conference speech as Labour leader to insist she would counter the SNP with "socialist" policies.

She told delegates at Aviemore that Labour would tackle the "right-wing" Nationalists from the left.

But her speech was nearly upstaged after new rows blew up over party funding and comments allegedly attributed to her spokesman.

A minute from Alexander's constituency party claimed her team ran a "shambolic" re-election campaign last year that ran up "serious debts".

Her press aide, Simon Pia, also had to clarify remarks he made about presiding officer Alex Fergusson.

Alexander's speech to the Scottish Labour conference was her first as leader and focused on sharpening the differences between her party and the Scottish Nationalists.

She declined to mention her recent fundraising problems and stressed the difference between the SNP and Labour was "Socialist against Nationalist".

She said of her rivals: "When you strip away the spin it's clear where the SNP stand. It is not on the side of those who believe in progressive taxation and public spending but with those who favour tax cuts for the rich and what's left for the rest."

Alexander also attacked the SNP government's "national conversation" - the consultation on constitutional change - by describing it as "an invitation for every flag-burning blogger to rant and rave, blame everything on the English, and all at the taxpayers' expense".

She also reaffirmed her commitment to internal reform for Scottish Labour and floated the idea of US-style primaries for selecting candidates."We all know Labour candidates are sometimes chosen by only a handful of activists. Is there another way?" she asked. "Could we not look across the Atlantic to their caucuses and primary system and see if there is a way to give all local Labour supporters a say in who represents them."However, Alexander's speech was overshadowed by further questions over campaign finance. Her early months as leader were dogged after the Sunday Herald revealed her campaign had been funded by an illegal donation from a Jersey tax exile.Now, a document passed to the Sunday Herald - a minute of a meeting of her local constituency party - reveals Alexander's Holyrood re-relection campaign was also poorly run.The meeting of the Paisley and Renfrewshire North constituency Labour Party, dated September 28 last year, and attended by Alexander, read: "Terry Kelly as election agent for Wendy Alexander noted that some aspects of the campaign run well others were fairly shambolic sic. It was noted that there were problems co-ordinating the campaigns between Paisley North and South and that measures need to be introduced now to prevent this hampering future campaigns."It added that the CLP had "some serious debts which needed to be cleared as a matter of priority".Her new press aide, Simon Pia, was  also dragged into a bizarre row over comments he allegedly made about presiding officer Alex Fergusson.Labour MSPs are unhappy about the performance of Fergusson, whom they believe is too soft on First Minister Alex Salmond at First Minister's Question Time.Pia said of Fergusson on Thursday: "Some say he's a big, thick Tory toff teuchter, but I don't think so."Alexander's spokesman said the quote reflected the fact that he was not saying the presiding officer was incompetent. However, beneath the scripted tributes at conference lies a party unwilling to view Alexander's leadership with much enthusiasm. A large part of the queasiness, according to delegates approached by the Sunday Herald, relates to Alexander's focus on internal reform and constitutional change.Labour's Holyrood leader is critical of the state of the party left behind by outgoing general secretary Lesley Quinn and has backed far-reaching changing. Included in the package is a Scottish Association of Labour Councillors, an "Academy of Lay Organisers" and the introduction of candidates' agreements.But these reforms, which were a mixture of internal recommendations as well as the findings of former John Menzies chief executive Patrick Macdonald, are far less ambitious than Alexander's real plans for the party.Many of Macdonald's ideas, for instance, have been shelved until Alexander has more support in the party to push them through.Alexander's plans for a Constitutional Commission - a cross-party body set up to review the powers of the Scottish parliament - is similarly unlikely to shore up her support in the party. The controversial plan, according to critics, means Scottish Labour talking about an issue associated with the Nationalists: the constitution.A large number of Scottish MPs, including senior ministers, believe Alexander is guilty of focusing on matters of little relevance to voters. One senior party insider told the Sunday Herald: "Wendy's instincts are always to focus on Byres Road' issues, rather than the bread-and-butter issues of the Labour movement. How about her backing a commission on creating world-class public services?"This scepticism was reflected by former Labour minister Brian Wilson, who said Alexander was "very much part of the presiding influences in Labour politics over the past 20 years in Scotland, who have decided that politics is really about constitutions and commissions". The off-the-record complaints about Alexander's performance also extend to her style of leadership; namely her tendency to make pronouncements without consulting key colleagues.The document she launched this weekend to outline her plans for the party - Change Is What We Do - was said to have been launched without it being shown to her shadow Cabinet.However, the overwhelming feeling at conference is that Alexander's leadership is safe - in the short term.A combination of improved performances at First Minister's Questions and the lack of a serious challenger within Labour's Holyrood group guarantees her time in the top job.Senior party figures believe her future will become clearer after next year's European election and following the outcome of the general election, expected in 2010.Alexander, whose power base begins and ends with the prime minister, would find it hard to continue if her key ally was ejected from Downing Street. "If he goes, she goes. It's as simple as that," said one Labour MSP.Nicola Sturgeon, the SNP deputy leader and Scottish deputy first minister, hit out at Alexander. She claimed: "The speech was a case of Wendy in Wonderland'."Labour could have begun a recovery at Aviemore, but are still stuck in the same negative, scaremongering groove. Sadly for them, they showed that they still amount to nothing more than the anti-SNP' party." But she added: "In contrast to Labour's negative agenda, the SNP government is delivering an authentic and genuine social democratic agenda."Robert Brown, the Liberal Democrats' Scottish chief whip, claimed Labour was "in no fit state to lead the fight for Scotland's future against the SNP". He added: "Wendy Alexander is living in a state of denial. The decline of Scottish Labour has come about because they have no answers to the big questions that face our country."They are short on solutions and they have come unstuck."Scottish Conservative leader Annabel Goldie accused Alexander of "scrapping" with the SNP over which party was more socialist.She said: "We will leave that left-wing fight to them and the Scottish Conservatives will go on offering the pragmatic and progressive policies needed for a 21st-century Scotland."