Decision making and problem solving

 
SCENARIO
Novosad is a capital city of about 500 000 inhabitants. There is a huge concentration of an industry, espacially the chemical one, transportation and inhabitants. Novosad is not just and industrial and commercial centre, but also a cultural, administrative, political and scientific one as well.
The unemployment is the lowest in the country.
Though Novosad with about 9 % of the population of the country produces more than 20 % of the national product, it doesn't receive enough money from a state budget to improve its environment, which is really very bad. The town has high air pollution, colapsing waste management and bad urban structure.
Small childern are suffering from alergies and breath diseases. Several foreign institutions, such as European University didn't want to move to the town until the environment will improve.
Chemoplant is a very old chemical factory, located just few kilometers form downtown, producing chemicals and among them viscose silk. Chemoplant is constantly loosing it's market, except for export of the silk, which's production is very poluting and other states don't want to have such.This production is also the only one, which brings hard currency to the factory.
Because of old and damaging technologies government decided to stop silk production from the beginning of the next year. If it is stopped, 600 mostly unqualified people will loose their jobs. Nowadays they are working in very bad conditions, but they receive extra money for their health damage.
Prevailing winds bring often the smell (H2S and CS2) of the factory to one district of Novosad (10 000 inhabitants) or to another one (25 000). Each night citizens from one or another part complain for a bad smell. Law says that if the air polutant is in the concentration unpleasant for the inhabitants, it violates the standards. There are no other limits set up for this type of pollution).
Management of the factory wants to change the governmental decision and to postpone close up of the silk production for three years later. They had already started to do lobbying and they asked municipal government for the support. Mayor of the district supports them, because workers from the factory are from his area, but the deputies are representing also other people.
 
QUESTIONS
You have 30 minutes to answer these questions:
> What are the arguments (political and economic ones) the management of the factory can use to postpone the close up?
> What are the arguments which citizen groups, influenced by polution can use?
> What are other interest groups, involved in this situation?
> What technical information do you need to collect?
> Which laws are concerning this situation?
> Name possible development alternatives of Novosad.
> Who has to make final decision? What does he need for it?