INSTRUCTOR PLT WITH STUDENT IN A PIPER SENECA HAS NMAC ON ENTERING TFC PATTERN AS INSTRUCTED. DEPARTED PATTERN AND CONTACTED TWR AGAIN FOR PROPER PATTERN ENTRY. TWR PERSONNEL IN TRAINING TO BECOME CONTRACT TWR.

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MY STUDENT AND I WERE DEPARTING AZO HEADED FOR BTL WE CONTACTED BTL TWR AND WE WERE TOLD TO RPT ENTERING L BASE FOR RWY 5; AND THAT THERE WERE TWO OTHERS IN THE PATTERN. WHEN WE ENTERED A 2 TO 2 1/2 MI L BASE FOR RWY 5 WE CAME WITHIN 100-200 FT OF A MOONEY IN THE PATTERN. THIS HAPPENED ABOUT THE SAME TIME THAT WE WERE ABOUT TO RPT ENTERING THE PATTERN. WE WERE ENTERING THE PATTERN APPROX 200 FT LOWER THAN NORMAL. WE IMMEDIATELY MADE A L 180 DEG TURN TO DEPART TO THE W TO AVOID THE TFC. WE THEN WERE TOLD BY THE TWR THAT WE WERE #4 FOR THE ARPT AND WE NEEDED TO ENTER THE L DOWNWIND FOR RWY 5. WE NEVER ACTUALLY SPOKE TO THE TWR UPON ENTERING THE BASE OR TURNING OUT TO THE W. THE FACTORS THAT LED TO THIS ARE: THE TWR PERSONNEL NOT ASKING FOR AN EARLIER RPT OR US GIVING AN EARLIER RPT OF POS. I ALSO ENTERED PATTERN WITHOUT HAVING TFC IN SIGHT. I THINK THIS COULD HAVE BEEN PREVENTED IF I HAD ENTERED AT A 45 DEG ANGLE TO THE DOWNWIND AND HAD TFC TO FOLLOW IN SIGHT BEFORE ENTERING THE PATTERN. THE CTLRS AT BTL ARE TRAINING RIGHT NOW BECAUSE THE TWR HAS GONE FROM FAA TO CONTRACT. THE CONTRACT EMPLOYEE THAT WAS TRAINING AT THE TIME OF THIS NEAR MIDAIR WAS RPTING TFC IMPROPERLY; IE; IMPROPER DISTANCES SHORT FINAL WHEN THE ACFT WAS ACTUALLY ON 2 MI FINAL. THIS WAS BECAUSE OF THE DISTANCE FROM THE TWR TO THE END OF RWY 5 (APCH END) IS 2 MI OR MORE. IT IS VERY DIFFICULT TO JUDGE DISTANCES FROM THAT FAR AWAY. I WENT TO THE TWR THAT DAY AND SPOKE WITH THE TWR CHIEF'S (CURRENT FAA AND CONTRACT) AND THE CTLR WORKING DURING THE TIME OF THE NEAR MIDAIR. WE ALL TALKED ABOUT THINGS HAPPENING AND HOW WE AND THE PLT OF THE MOONEY COULD FIX THEM. CALLBACK CONVERSATION WITH RPTR REVEALED THE FOLLOWING INFO: RPTR STATES THE ACFT WAS A PIPER SENECA. THE FAA TWR CHIEF IS TRYING HARD TO CORRECT SIT BUT IT APPEARS THAT THE CONTRACT MGRS JUST WANT TO CHK OUT THEIR EMPLOYEES PROMPTLY AND PUT THEM IN THE TWR. THE FAA PERSONNEL IS QUITE CONCERNED WITH THE SAFETY OF THE OP RATHER THAN THE SPD WITH WHICH THEY CAN GET THE CONTRACT PERSONNEL ON LINE. RPTR IS QUITE CONCERNED THAT THERE WILL BE A MIDAIR IF THE CURRENT PROCS CONTINUED.