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His National government implemented economic reforms, dismantling many state controls. In 1951 , the National government signed the ANZUS defence agreement with Australia and the United States. The National government also undertook constitutional change in 1950 , by abolishing the Legislative Council , the Upper House of Parliament , on the grounds that it was ineffectual. Consequently New Zealand has since had a Unicameral parliament.

In 1951 , Holland, having confronted striking dockers and coal miners intent on what he called "industrial anarchy", called a snap election and was re-elected Prime Minister.

Following ill health in 1957 , Holland stepped down as Prime Minister to be replaced by Keith Holyoake .