The new NSW Police Minister, Matt Brown, has quit the state cabinet just three days after being promoted, as it emerged that he danced semi-naked and simulated a sex act with Wollongong MP Noreen Hay during a late-night party three months ago - a claim that Ms Hay has deniedIt is understood the Premier, Nathan Rees, spoke to Mr Brown earlier yesterday evening and warned him his actions were inappropriate. But it later emerged that Mr Brown had not given full details of the incident to the Premier and once they became public the minister tendered his resignation."Matt has tendered his resignation to the Premier tonight and the Premier has accepted his resignation over an incident he deeply regrets," a spokesman for Mr Brown said last night. "He apologises for any embarrassment he has caused the Government."The incident is believed to have occurred on budget night when Mr Brown held the housing and tourism portfolios.Ms Hay denied Mr Brown had simulated a sex act upon her."That is absolutely untrue," she told the Sydney Morning Herald last night. "Absolutely nothing untoward occurred and certainly when I was in that room with Matt Brown he was fully clothed."She said Mr Brown was one of many dancing in the room. It was reported that Mr Brown also made a lewd remark to Ms Hay's adult daughter."I think someone is getting confused here," Ms Hay said. "Nobody would speak to my daughter, or any one of my children, like that in my presence."She said she had no idea why Mr Brown quit. "I wasn't in the room all the time but while I was there I can assure that suggestions made about me and my daughter are completely untrue. I don't know why Matt has resigned; I'm saddened by that so soon after being appointed."The resignation will force the Premier to find a replacement for Mr Brown, who has yet to indicate whether he will resign from Parliament.The most likely candidates for promotion are Steve Whan and Tanya Gadiel, both from Mr Brown's Right faction.But Mr Rees will still have the headache of moving a senior politician into the difficult police portfolio.Mr Brown is estranged from his partner, with whom he has a son.with AAP- DO YOU KNOW ANYTHING ABOUT THE PARTY? TELL US - scoop@illawarramercury.com.au, or phone 42212206