Prendergast's government was the first Labor government in Victoria able actually to govern (Elmslie's government had had no chance to do anything before being defeated). Immediate action was taken to provide shelter for unemployed Victorians, while the government set up royal commissions into the causes of a major police strike in 1923, the prices of bread and flour, and the soldier settlement scheme. Increased expenditure was made available for rural roads, while reductions were made on rail freights and fares. With the support of the Country Party, he was able to pass several bills assisting farmers, but the Country Party would not support anything which benefited Labor's urban working-class base. This was a frustrating situation for Labor ministers, and several urged Prendergast to call another election in the hope of improving their position, but Prendergast was too timid to run this risk. In November the Country Party patched up its differences with the Nationalists, and the two parties joined forces to defeat Prendergast in the Assembly. The Country Party leader, John Allan, succeeded him as Premier.