Mr Brown was accused of cavorting with Ms Hay in a sexually suggestive manner in the post-budget party in June.

He was also accused of making lewd comments to Ms Hay's daughter Alison at the party.

"Someone is obviously disgruntled ... because they are talking about a gathering that took place three months ago," Ms Hay responded on ABC radio.

"There were a number of young women in that room ... it's ridiculous ... I had a dance with Matt Brown, that's true, you know, and there was laughter going on and jokes happening."

After Mr Brown was denounced by Premier Nathan Rees later in the day, she added:

"I was not in Matt's presence for all the evening and as such cannot comment on his behaviour during times when he was not in my presence."

Ms Hay said she supported "without qualification" Mr Rees' decision to sack Mr Brown, who "failed to provide a full account of his actions to the Premier when first asked."

Suggestions that a "noticeable bump" on Ms Hay's forehead was caused by Mr Brown went unanswered, with Ms Hay failing to return the Mercury's calls.

Mr Rees said in Sydney that he would inquire as to the nature of the mysterious bump.

"I didn't notice anything. I'll have a discussion with Noreen later today," he said yesterday.

The accusations come at a precarious time for Ms Hay, whose previous position as Parliamentary Secretary for Health still hangs in the balance following former premier Morris Iemma's resignation.

Mr Rees said he had made no decision about Ms Hay's future but would be talking to her by the end of the week.