The election was called by surprise by Liberal Premier Louis Robichaud. The Progressive Conservatives, under leader Cyril Sherwood, had accused the Liberals of corruption for allowing an Italian company, Cartiere del Timavo, to construct a paper mill in Newcastle, and grant it rights to Crown land over other companies. The Conservatives also claimed that Lieutenant-Governor Leonard O'Brien had sold land to the company. Robichaud made a quick decision to call an election amid those accusations.
Analysts had wondered why Robichaud decided to call the election only two-and-a-half years into his mandate over what they thought was a small issue. Several of his projects, such as tax reform and an overhaul of post-secondary education (which eventually led to the creation of the Université de Moncton and the University of New Brunswick at Saint John), died in the legislature. However, Robichaud later said that he held the election while his popularity was at its height, and the Conservatives were weak.
Robichaud campaigned on a platform of economic development and encouragement of outside investment in the province. Cartiere del Timavo threatened to cancel the project if the Liberals lost the election. Many voters perceived Sherwood as too timid in his attacks on the Liberals on the campaign trail, as compared to his vigorous speeches in the Legislature.
The campaign coincided with a federal election, which was held two weeks earlier. That election saw the Conservatives of John Diefenbaker defeated by the Liberals of Lester Pearson. Robichaud then used the Liberal victory nationally as leverage provincially and promised New Brunswick would receive better treatment from the federal government with the same party in power.
On election day, the Liberals were re-elected with an increased majority of one seat over the 1960 election.
