Can you clarify – do you mean they want to ‘own’ the copyright and you will not have your writer’s share in either broadcast or mechanicals?
Although both broadcast and mechanicals are unlikely in this instance (which makes it even more ridiculous if that’s what they’re asking) it’s absolutely absurd to grant that to anyone, any entity, ever, unless you’re flat out desperate for some cash. Never give up the writer’s share.
But maybe this isn’t what they mean by owning the copyright so I’ll hold fire.
Also, you say they are a government department so their budget is low? Everybody says their budget is low. Let me repeat this.
Everybody says their budget is low.
And the government’s budget is low? Didn’t they just borrow another 4 hundred million million million billion? 😉 I’m kidding but you know.
On the other hand, $1000 for a first gig is excellent – I got $0 on my first gig and my name spelled wrong in the credits. But it’s only excellent if you don’t have to ‘give up the copyright’.
As Mark says a license in perpeuity is better – and normal. If they want exclusivity on that and you’re willing to give it to them for $1000 then that’s fine too. But not giving up your interest in the work. You should always at a minimum retain your writer’s share 50% of total royalties, EVEN with an exclusive license in perpetuity!