If your final export is for Blu-ray, then use the Crop effect to cut off the unwanted image area, creating a matted widescreen look.
If the final export is for web or computer playback, where the standards have more freedom, you can crop during export to just cut off the image area you don't want.
Do NOT set up your sequence to match your desired export. Set it up to match your footage, and get rid of the extra material in one of the two ways just mentioned.
Thanks for that.
My final export will be for film festival release and eventually onto DVD.
I will try what you have given me!
What do you call "cinematic widescreen" and does the festival agree with you?
These days it generally means 2.39:1. The OP's resized dimensions support that.
Yeah sorry, by cinematic widescreen I meant 2.39:1